KAITANGATA COAL COMPANY

Otago Daily Times, Issue 25852, 24 May 1945, Page 2

KAITANGATA COAL COMPANY

DIFFICULT YEAR EXPERIENCED

The chairman of directors, Mr J. A. Sparrow, reported at the annual meeting of the Kaitangata Coal Company, Ltd., yesterday that conditions experienced during the past year had been more difficult than at any time in the company s history. There had been higher operating costs and a substantial drop in output, the recent floods having caused a reduction of 5000 tons in the coal mined. After negotiations lasting about two years for a further subsidy to cover increases caused by higher labour costs,' Mr Sparrow said, the Government had granted an increase in the subsidy of 3d a ton, but the amount was not retrospective to the year 1942. Cost sheets showed that a grant of at least Is 3d per ton was necessary. The Government had not repaid the further increases in costs which had been forced on the company despite repeated promises that all increases would be met by subsidy. One of two prospect drives worked during the year was now ready to produce coal. Mr Sparrow said the output from the mines had not been as high as usual, the output of marketable coal for the year having dropped by over 12,000 tons, while household coal was down by 17,000 tons. This was. brought about by the fact that a large number of development places were at present being worked. In spite of the drop in output, mine and railway wages were up by £6OO, the average mining wages cost being 17s 2d a ton, or is 4d higher than for the preceding year. The daily average net earnings of miners at Kaitangata since 1939 were as follows: 1939. 33s lOd; 1940, 39s 2d; 1941, 44s 3d; 1942, 41s Od; 1943, 43s sd; 1944, 48s 3d- 1945, 51s. A further application by the Miners' Union for increase had been refused by the mine owners. Stores costs were also higher, the chairman added. Development work had proved very expensive, and the cost of Summer Hill was in the vicinity of £3300, Mr Sparrow said. They were now, however, in a position to obtain a return from this area. An officer of the Mines Department had also examined the property with a view to working It by the opencast method, but his report had not yet been received. The main items in tne company's balance sheet were reviewed by the chairman, who explained that an increase of £ISOO in income from rents and dividends was derived mainly from the sale at a profit of shares held by the company. The retiring directors, Messrs W. Carson and P. P. McSkimming, were reelected.