OIL SHALE MINING

Stratford Evening Post, Issue 10, 4 August 1930, Page 4

OIL SHALE MINING

DEPOSIT IN AUSTRALIA. REVIVING THE INDUSTRY. SYDNEY, July 24. Tremendous interest has been created In Australia by the announcement that a powerful group of Broken Hill companies has decided to„become interested in the oil shale fields of Australia. This Is regarded as one of the biggest forward moves in the Itfustralian mining industry of recent years. It would seem that the fullest financial and technical resources are ensured for the exploitation of the deposits on>a large commercial scale. Extensive reserves of oil shale exist in several States, notably in New South Wales and Tasmania, from which a full range of petrols, kerosenes, heavier oils, waxes and numerous by-products can be won. In New South Wales alone known deposits exceed 40,000,000 tons of shale from which 3,500,000 gallons of crude oil may be expected. . The problem of the industry in the past has been chiefly one of costs. It has not been possible to mine the shales and treat them, under old methods of retorting, to produce oils at prices that could:,compete successfully with imported products from petroleum wells. Oil shale mining was once a profitable Australian industry. The main discoveries were made 70 years ago, and in the early "nineties" the average annual production in New South Wales was worth £IOO,OOO. The internal combustion engine was then only in its infancy, and the motor age had not dawned. The shales were mined chiefly for their kerosene content in which thejr were so rich that, when local retorjting became unpayable, richer crude shalea.were shipped to Germany. v The New Soutfy Wales shales rank as the most valuable in the world—giving as much as 150 gallons of oil to one ton of shale, with an average of between 70 and 120 gallons. Large works have been erected at three centres—to the west of the Blue Mountains, at Newnes—named after the English newspaper proprietor who supported the venture—at Murrurundi, in the North, and at Mittagong, on the Sydney to Melbourne c railway line. Owing to high costs, low prices, and the indifferent success which attended the Scottish system of retorting, the enterprises were not profitable. The Broken Hill companies have become interested in the Newnes deposits. i The Commonwealth Oil Corporation, with a capital of £BO,OOO, established big i works and commenced operations at Newnes about 25 years ago. Many mis- ; takes were made and the enterprise fell 1 into the hands of debenture holders. Mr. John Fell subsequently worked the deposits on a small scale, but he found labour conditions oppressive. The revival for three years of the Commonwealth oil shale bounty, commencing with 3td a gallon, but declining to lid as production increases, and larger duties against imported oils, have encouraged renewed efforts, both in New South Wales and Tasmania, to product some of Australia's '.liquid fuel requirements. It is possible that 500 men may be employed at Newnes, so the 1 importance ofthe development of the'deposits