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ties produced have not been of very great importance. A small shipment of 10 tons of antimony ore, the result of previous operations at Endeavour Inlet, was also exported. OPAL-MINING. A limited amount of work was done in Mount Peel District on the land taken up by the Record Reign Company, but no stones of any value were found. In order to enable mining for opals to be carried on in the Tairua District, it is proposed to declare that the provisions of the Mining Acts shall apply to mining for that precious stone in the Hauraki District. PETEOLBUM. The bore-hole at Moturoa, near the Sugar Loaves, at New Plymouth, was continued to a depth of 2,050 ft., and although indications of the presence of petroleum were found, it was determined to cease operations in this immediate locality and commence in a fresh place, four miles and a half away, and at a distance of three miles from the sea. Samples of petroleum of excellent quality were received from the Cheviot District, but no development work has yet been undertaken. Nothing has yet been done to explore for petroleum on the mineral lease taken up in the Rotorua District. KAUEI-GUM. Notwithstanding the large quantity of kauri-gum exported every year, there was very little diminution in the amount exported last year, the quantity being 6,641 tons, as against 7,126 tons for the previous year. There was 485 tons less exported this year, the value being less than that of the former year's produce by £33,313, the value of last year's produce being ,£431,323, which gives an average value of about £60 10s. 6d. per ton, whereas for the present year the average value was £60 per ton. This industry affords a livelihood to a large number of both Europeans and Natives; but the average earnings of persons employed in digging gum cannot be ascertained. No doubt the time is approaching when the gum will be exhausted, but a considerable period will yet elapse before this takes place. The total quantity of kauri-gum exported since 1853 is 190,570 tons, having a value of £8,512,852. For further information in respect to the industry, I would refer honourable members to the report of the Royal Commission on the subject which has been presented to Parliament (H.-12, 1898). EOADS AND TEACKS. The expenditure on roads and tracks has greatly increased. The activity in gold-mining demanded greater facilities to enable communications with new districts, which, on account of the discovery of payable reefs, required to be made more readily accessible for prospectors and miners working their claims. It was therefore determined to ask the House last session for an increased vote under these headings. Some of the works have been carried out on the co-operative system, but the majority have been constructed under the supervision of the County Councils and other local bodies in whose districts they are situated. The total expenditure by the department during the last six years on roads and tracks for the development of the mining industry amounts to £242,963 19s. Bd. in direct grants, and £88,075 os. 4d. in subsidies to local bodies; out of which £37,410 14s. 3d. and £12,158 6s. 7d. respectively was expended during the year. WATBE CONSBEVATION AND WATEE-EACES. In continuation of last year's work, the site for the dam at West Eweburn having been tested by boring, &c, a re-examination was made, the site finally approved, and preliminary works in preparing foundations commenced. An examination of the proposed Thames Low-level Water-race has been made, with a view to ascertaining its adaptability for supplying water for increased motivepower ; also at Te Aroha, where the water is proposed to be first used as motivepower for lighting the Sanatorium in the Domain with electricity. With a view 2—a 2.

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