C—2.

Hydraulic and Alluvial Mining. This branch of the mining industry covers a very extensive area in the goldfields of the Middle Island. The principal districts in which it is carried on are Nelson, Westland, Otago, and Southland. There are no great developments to record, but a steady output has been maintained, the returns showing an increase over those of last year. The experiment of working alluvial flats by dredging has not proved the success that was anticipated, and a return, in many cases, has been made to the former method of hydraulic elevating and sluicing. Dredge Mining. This industry is now being worked on a commercial instead of a speculative basis, and a steady output of gold is maintained. The manner in which dredging is carried on in the Southland flats proves that these areas are very valuable, and if the planting of forest-trees on the ground operated on is proceeded with the dredging of these flats will not be so detrimental from the pastoral point of view as many people imagine, as the land is improved rather than deteriorated. Notable examples of this improvement can be seen in the Waikaka Valley, Southland, where the sluice-box method of dredging is generally in vogue. COAL-MINING. A very marked increase in the production of coal and lignite is recorded for the past year, the total output being 1,585,756 tons, as compared with 1,537,838 tons produced during the year 1904. The increase for the year 1905 was 47,918 tons, as against that of 117,609 tons recorded for the previous year, the output of the several districts being shown in the following table of comparisons :—•

Comparative Statement of Coal and Lignite raised during the Years 1905 and 1904.

The comparative tonnage of the various classes of coal, &c., for the years 1905 and 1904 is summarised as follows:—

The total recorded output of the various classes of coal, lignite, and oil-shale is now 21,701,419 tons.

5

Output for 1905. Increase for 1905 over 1904. Output for 1904. Increase for 1904 over 1903. Northern District West Coast District Southern District Tons. 259,876 856,227 469,653 Tons. 17,359 19,277 11,282 Tons. 242,517 836,950 458,371 Tons. 32,722 55,918 28,969 Totals ... 1,585,756 47,918 1,537,838 117,609

Class of Coal, &c. Output for 1905. Output for 1904. Increase for 1905. Bituminous and semi-bituminous coal Pitch-coal Tons. 965,083 23,072 496,936 100,665 Tons. 938,518 24,506 483,858 90,956 Tons. 26,565 1,434* 13,078 9,709 Brown coal Lignite Totals 1,585,756 1,537,838 47,918 * Decrease.