WESTPORT MINE

Otago Daily Times, Issue 26328, 6 December 1946, Page 8

WESTPORT MINE

NATIONALISATION POLICY CONSERVATION OF BITUMINOUS SEAMS “Now that the present Government has been returned to power we can only assume that it will carry out the policy as enunciated, that is, the taking over of all privately owned coal mines,” said Mr James Begg, when speaking at the annual meeting of the Westport Coal Company held yesterday. Publicity had been given to the possible exhaustion of the bituminous seams in New Zealand, all of which were situated on the West Coast, and it had been reported that their life was limited to as low as 20 and even 14 years. “So far as this

company’s areas are concerned, this is not altogether correct,” said Mr Begg, “but it must be admitted that some control is desirable to conserve the bituminous coals which are so valuable. It is natural that the Government regards this as its duty.” The company had very competent mining engineers? 1 in charge of its mines, Mr Begg said, and they contended that the company’s leases were the most valuable in New Zealand. Conservative estimates prepared by the company’s officials had shown reserves of not less than 52,000,000 tons of excellent bituminous coals in its area, equal to 2,000 tons a day for 100 years, Mr Begg said. An area of 400 acres of coal-bearing land which the company leased to the Westport-Stock-ton Company was now being worked on a royalty basis by the Government on a basis of 0d a ton on all coal extracted. Estimates of the amount of coal in this area varied from 5,000,000 to 10,000,000 tons. At Denniston the new lease was being developed as fast as was possible under present conditions. “The Prime Minister ill his broadcast only last week, repeated what he has said on former occasions—that the Government intends to pay reasonable compensation for all mines taken over,” Mr Begg added, “and as those taken over during the last two or three years have been on a fair basis, we do not doubt that the Government intends to be reasonable. We anticipate our mines and plant will be valued and compensation paid accordingly. If our mines are nationalised the State will acquire a well-equipped property in good working order, with developments under way which will largely increase the annual output and cheapen the cost of production. In the meantime, we intend to go on with our work and development as usual.”