COAL MINING

Timaru Herald, Volume CXXXVIII, Issue 19941, 27 October 1934, Page 14

COAL MINING

AN UNPROFITABLE INDUSTRY By Telegraph Press Association WELLINGTON, October 25. “Coal mining at present is not a paying proposition, and to place the industry on a sound basis some scheme of amalgamation, co-operation, or combined marketing should be considered in order to bring about the desired result,” said Colonel Holgate. in the chairman’s address at the Coal Mine Owners’ Association annual meeting to-day. He said other industries had materially benefited by such methods. The agreements entered into last February with the Miners’ Unions were for 12 months, and although not signed, speaking generally, had been well maintained. It would be necessary again to meet the Union representatives in February to consider new agreements. He gave the main causes for the depressed condition of the coal mining industry as too many mines operating with consequent over-production, and the cutting of prices in some districts below the cost of production. In Australia and in other countries it had been found necessary by the Government to step in to prevent price cutting, and protect the industry. This practice was one he advocated avoiding, if possible. He was convinced that without the introduction of some practicable scheme the industry would continue to languish in spite of the increasing population and industries There was one direction in which the Government could be of material assistance; that was instead of further expenditure on hydro-electric schemes, serious consideration should be given to the question of the generation of electricity from coal, with power stations erected in the vicinity of collieries. Apart from electricity, the increasing use of Diesel oil engines was affecting, and would still further affect the demand for coal.

Colonel Holgate quoted the example of Germany. He said in 1917, the whole requirements for oil and benzine there were imported. “To-day we are Informed that 40 per cent of the requirements are being produced from their coal."

He went on to speak of hydrogenation, and said he was convinced that in future years New Zealand brown coals at least would be carbonised, as he considered carbonising on similar lines to those adopted in Waikato ivas the only ideal for New Zealand as a high grade smokeless fuel and oil suitable for forming into Diesel oil. Light oil and benzine was obtainable in payable quantities, the demand for which was already here and Increasing. The following officers were elected: President, Colonel Holgate; vicepresident, Mr W. A. Flavell; executive, Messrs W, Goodfellow, W. Excell, W. Hardie, F. W. Mitchell and R. B. Bell.