GOLD MINING

Otago Witness, Issue 4066, 16 February 1932, Page 30

GOLD MINING

PROSPECTS OF REVIVAL SOLUTION TO UNEMPLOYMENT PROBLEM. “ Gold mining shows at the moment every sign of a genuine revival,” declared Mr A. H. Kimbell, Under-secretary for Mines, in the course of an interview with our representative on Tuesday evening. Mr Kimbell said that reefs of distinct promise had been discovered in Otago, Marlborough, and the Thames in the last few weeks. Their value, however, could not be determined till extensive prospecting operations had been carried out. “ There is one piece of advice for the investing public that I should like to stress,” he added, “ and that is that they’ should not put money into new mining ventures till the areas to be opened up have been efficiently prospected by reliable men. In the case of sluicing operations it is equally necessary to be sure that adequate supplies of water are available to carry’ on operations with 100 per cent, efficiency.” He added that occasionally there had been cases of the public subscribing to mining ventures which were not properly and reliably tested before the companies were promoted. Two or three of the new reefs which have been located by prospectors in the North Island were away in the bushclad mountains of the Thames country—- “ rough stuff ” that the old-time prospec-

tors had not tackled thoroughly. The' prospectors who had made these finds l were subsidised by the Unemployment Board through the Mines Department.Only men registered for relief were s eligible to receive this money, and they had to give the Government 10 per cent' of the gold won to benefit the unemploy* ment fund.

Mi Kimbell is in Dunedin on the£ authority of the Minister in charge o£ Unemployment (Mr J. G. Coates), an<£ has interviewed many of those who are s interested in gold mining as a solution to r the unemployment problem. “ The unem» ployment problem and gold mining are,”’ he said, “ closely related at present. It is. being found, for instance, that many miners who have drifted to the cities in recent years are now going back to pros' pecting. Investigations are now being: made in selected areas of the South Islandwith the object of launching a schemer which will, it is hoped, give employment to large numbers of men. The Unemploy' ment Board and the department are con* centrating on the encouragement of pros* pecting and mining with all the forces at our command.”

ADDRESS BY MR KIMBELL ASSISTANCE FOR PROSPECTORS LOCAL COMMITTEE TO BE SET UP At the Dunedin Town Hall on Wednesday morning there was a large gathering of persons interested in gold prospecting, when Mr A. H. Kimbell, Under-secretary for Mines, gave an address on the gold mining industry, with particular reference to the unemployment situation. The Mayor (Mr R. S. Black), who presided, explained that it was desired to eliminate “ red tape,” and to have the power vested in a local body, such as the local Unemployment Committee, to obtain subsidies for men who had a place to go prospecting and who could show their bona tides. He would ask Mr Kimbell to give the meeting a resume of what was being done elsewhere. Mr Kimbell said that, prior to last general election, a scheme had been started at Thames and Coromandel with money found by the Unemployment Board, local executive committees being set up at each place. The committees consisted principally of men who had a wide knowledge of mining, and their work was to deal with applications made by unemployed men who were eligible for relief. The inspector of mines for the district and the local Unemployment Committee acted in conjunction with the special committee in each case. At present there were about 60 men working near Thames. They were controlled by a whole-time supervisor, who was employed by the department, and also by the director of the School of Mines. The supervisor had full power to advise, control, and dismiss any man, and the whole scheme was a local affair without any “ red tape ” about it. Three reefs which gave good promise had been discovered in the Thames district. There were about 40 men working at Coromandel, where the area was more or less concentrated. It was in a somewhat different position from Otago or Southland.

A mining geologist had been employed in Nelson and Marlborough to endeavour to find work for the unemployed in mining pursuits, and it appeared that work would be found for several hundred men. At Thames, assistance to the extent of 30s per week was given to married men, while single men were given 15s per week. The Unemployment Board had launched a scheme on the West Coast of the South Island under the control of the inspector of factories in Greymouth. Between 40 and 50 men were being assisted there. Mr Kimbell stressed the fact that any scheme started in Otago should have adequate supervision. The Unemployment Board, he said, was prepared to find money to assist unemployed men who wished to go prospecting on the condition that 10 per cent, of the gold recovered should be refunded to the board. Mining companies and syndicates which were prepared to find employment for men would be subsidised by the board to the extent of 5s per week for single men off relief work and 20s net week for married men. The object of setting up a committee in Dunedin was to eliminate “ red tape,” so that there would be as little friction as possible. The department was anxious to obtain particulars regarding land which could, be worked and the number of men which could be absorbed A speaker expressed the opinion that mining syndicates should be on the same basis as individual prospectors. Mr Kimbell said he considered that the department’s offer was a fair one. Mr D MTntosh asked if the department would offer a subsidy to miners other than the unemployed, and Mr Kimhell stated that the expenditure of the vote of £7OOO to the Mines Department for the year ending March 31 next had been authorised months ago. The position in the future depended on the attitude adopted by Parliament, but he was of the opinion that the department would be prepared to help a miner who was able to show that he had a promising venture. In reply to another question, Mr Kimbell intimated that the Department was fully prepared to subsidise small parties going in for mining. Mr John M’Donald said he would move that Mr Kimbell should name a committee to be set up in Dunedin to control mining affairs in this district and that the meeting give its support to the proposals which had been outlined. He was sure that the scheme was a move in the right direction, but he thought it was absurd for the Government to offer only 5s weekly as a subsidy for men employed by a syndicate. It was impossible t 6 imagine a small committee working under such conditions. He believed that Mr Kimbell was in earnest in his efforts to do something for the mining industry which he had' always tried to develop. There were many old miners in Dunedin at present without a shilling in their pockets, said Mr M'Donald. and yet there were any number of reefs in Otago, and there was room for some thousands of men to take up mining. The nation was crying out for money to pay its debts and the only two ways to secure the money were through mining .and through the farming industry and these avenues should be developed.

The motion was seconded pro forma by Mr W. A, Bodkin, M.P., who said that there were opportunities in Central Otago to employ large numbers of men. There was a great deal of ground which had never been worked because the miners who had gone.to the district in the early cays had acquired the water rights which, in many cases, had since been taken over for irrigation purposes. Much shallow land existed which would pay to be worked if water could be brought to it, and he was certain that 1000 men could pe profitably employed in the gold-mining industry in Central Otago if the matter were taken up systematically and thoroughly investigated, though it would pierely.be a waste of money to send men indiscriminately _ through the country. Miners’ Associations had been formed in various districts and if a committee were fet up in Dunedin, he thought it should endeavour to co-operate with these associations. If the committee were given the same powers as the Unemployment Committee, it could act on its own initiative and spend the money to the best advantage. The greatest help the mining industry could offer to unemployed men was that they would be able to help themselves. He did not think that the question of subsidising syndicates wag going to assist at all. What waa wanted was to give the men an opportunity to work for themselves. If the unemployed men of Otago had been working for themselves in this way, instead of the No. 5 scheme, they would have had a gold production of £l9OO a week, whereas under the No. 5 scheme they were getting very little. Mr AV. A. Mitson eaid that if syndicates received assistance a great many men would be employed. Mr Bodkin added that he was not opposed to subsidies to syndicates. Mr Kimbell said that-he thought the committee proposed should consist of not more than four men who had a good knowledge of mining in Otago, with the inspector of mines and a representative of the Labour Department. He did not think he was in a position to nominate such a committee immediately. It was agreed that the motion be withdrawn, and the meeting should approve the proposal to set up a committee on the lines mentioned.

The Mayor suggested that a subsequent committee, could consider the question of increasing the subsidy. He wondered if it would be possible for some of the water races to be diverted, and if some special grant would have to be made for the purpose.

. Mr Kimbell said he would give a& an instance the Mount Ida water race, which was operated by the Mines Department for some years, solely for mining. As mining waned, the Public Works Department took over control and supplied water to farms for irrigation purposes. He understood that there were times when water went to waste, and he thought that, under those circumstances, miners should be allowed to use it without payment so long as they agreed to pav the Public Works Department 10 per cent, of the gold they obtained from sluicing. Possibly similar arrangements could be made elsewhere. The question of bringing in water races at large capital expenditure would have to be dealt with specially. Mr F. Duncan said it was -unfortunate that the functions of the Mines Department had been taken up to such an extent by the Public Works Department, which was not very sympathetic towards the Mines Department. He suggested that the Mines Department might secure from its records reports of all auriferous and alluvial areas in Otago for publication in the local papers. This would aid in restricting prospecting work to goldbearing areas. The following committee was appointed to confer with Mr Kimbell with a view to setting up a permanent board in Dunedin: —Messrs R. Lee, G. AV. Thomson, W, A. Mitson, Joseph Stephens, D. MTntosh, R. Williams, and John APDonald. PERSONNEL OF COMMITTEE. At the conclusion of the public meeting the provisional committee further discussed the matters which had arisen, and it was agreed to meet again in the afternoon. At the later meeting, on the motion of Mr John APDonald. the following com- ■ niittee was appointed to act as the parent body in Dunedin, with the co-operation of the various miners’ associations and, in districts where such associations did not exist, with the assistance of persons to be appointed:—Dr A. R. Andrew (director of the Otago School of Mines), Professor H. Black (lecturer on metallurgy and assaying at the Otago University). Messrs R. Lee (mining engineer), T. APAlillan (inspector of mines), and a representative of the Labour Department. Mr G. AV. Thomson, mining engineer, has offered his services in an advisory capacity to the committee. It is anticipated that the newly-ap-pointed committee will meet at an early date in order that there may be no delay in putting the proposals in operation.