IRON AND STEEL

Wairarapa Times-Age, 2 August 1939, Page 6

IRON AND STEEL

PRODUCTION AT ONEKAKA

To START IN 10)2.

ORE RESERVES BELOW PREVIOUS

ESTIMATE

(By Telegraph.) (Special to "Times-Age. ) WELLINGTON. This Day. A statement to lhe effect that it was hoped to commence production at the iron and steel works at Onekaka some time during 1942 was made in the House of Representatives this afternoon by the Hon D. G. Sullivan. Minister in Charge of the Iron and Steel Industry Act. Mr Sullivan stated inter alia: “The intensive development work which the Government has carried out on the orefields has proved unfortunately that previous estimates of quantity, which wore based on surface indications only, were extremely optimistic and over-stated. It is pleasing, however. to advise hon members that although our reserves of iron are considerably less than was at first believed, the work done to date has assured us of sufficient raw materials to maintain our proposed annual production for a period of more than 50 years, whilst further development work, which will be carried on as a regular feature of the undertaking, may substantially extend that period. "A comprehensive survey of the coal position is at present’in hand. Results of this survey to date are advanced enough to assure the Government of sufficient coal of suitable quality being available to the steel works without in any way endangering the supplies available for other general purposes. “The initial production programme envisaged may be briefly stated as follows:—Billets and slabs, 2,000 tons; rails, 11,000 tons; sections, flats, and round bars. 50,000 tons; wire, 15,000 tons; sheets, 26,000 tons; total. 104.000 tons. In addition, from 3,000 to 5,000 tons of pig iron will be produced according to market requirements. This production programme comprises approximately GO per cent of the present day market requirements of New Zealand, and is confined to qualities and sizes that are in greatest demand. The cost of the necessary plant will be within the financial authority provided for in the Iron and Steel Act of last year. After referring in detail to various aspects of the plant to bo installed, incorporating the most modern and best features of existing practice, Mr Sullivan said the commencement of production at the steel plant would make available certain by-products which would be of considerable value to the community. One of the most valuable would be basic slag and there would also be by-products from the coke ovens, such as refined tar, benzol and coke oven gas.

Passing on to refer to employment, Mr Sullivan said: "The influence of such an expansion of productive employment cannot be over-emphasised. During the constructional stage of the steel plant, a considerable amount of employment will be created, and many hundreds of men representative of various trades will participate in the work of site preparation, foundations, assembly of plant, and erection of buildings, etc. Just so much of the actual construction and fabrication as is economically possible will be carried out in the Dominion. When the plant comes into full operation approximately 1500 men will be directly and permanently employed. In addition the indirect employment will be considerable. In the coalmines, for instance, the supply of coal amounting to nearly 200,000 tons per annum, not subject to seasonal variations, will create favourable conditions for continuous production with stable employment for the miners. It means that approximately 2,000 workers will be directly engaged in production either in the steel plant or in supplying the necessary raw materials of domestic origin. This number of men will in turn provide further indirect employment to a very considerable degree.”