C—2a.

4

Days worked by Coal-hewers. —The total number of days that could have been worked by coalhewers was 9,471,. the days worked were 7,932f, and the number lost, including those lost through sickness and not working on back Saturdays, was 1,538J. Daily Output. —The average daily mine output was 183 tons 15 ewt., an increase of 37 tons 5 cwt. per day as compared with the previous year. The daily average output per coal-hewer was 5 tons 4 cwt., an increase of 9 cwt. over last year. Deficiencies. —The total amount paid under the minimum-wage clause, during the year was £507 3s. 2d. This works out to a cost of 2-94d. per ton. Underground Development. —During the past year the principal work in connection with coal- . winning has been carried out in the extension of the main-heading section. The main headings were extended a distance of approximately 10 chains. From these headings other places are being driven in an easterly direction, and from which coal of excellent quality has been produced. In the extension of the main and companion headings the seam has been fairly uniform in quality and thickness, but somewhat variable in gradient. In the course of driving the first 6 chains the headings were practically on the strike of the seam, but contained a steep dip from right to left a-cross the faces. In driving the last 4 chains the seam commenced to rise in the direction the headings are being driven. This gradient gradually increased, and at the present time it is lying at an angle of approximately 45 degrees. These headings are now within 4 chains of connecting with the outcrops on the banks of Cannel Creek. Between these two points there is a, difference in level of 90 ft., the outcrops at Cannel Creek being so much higher. The present indications are that there is either a, displacement between these two points or the seam from the present face of the headings will require to rise at a gradient of 1 in 3 to connect with the outcrops. In conjunction with the development of the main-heading section three other small sections are worked, and from which pillars arc being extracted. Electrification. —At the present time the power plant at this colliery consists of two very old Colonial under-fired boilers, one straight-line self-contained air-compressor, and one 15-horse-power directcurrent generating set. This plant is being run to its full capacity, and as the various works extend will soon be inadequate to meet the mine requirements. The question of purchasing new plant has been carefully considered, and in view of the scattered nature of the field it has been decided to adopt electricity instead of steam and compressed air. Another matter carefully considered was whether power should be generated at the mine or obtained from the Grey Electric-power Board. To purchase and install a modern generating set the capital outlay would be rather high, therefore in order to avoid this expenditure it was deemed advisable to take power from the Grey Electric-power Board. Work in connection with the electrification is now well in hand and some of the necessary equipment has already arrived at the mine. Accidents. —During the year there were a few minor accidents, but not any of a serious nature. The payments made at this colliery under the provisions of the Workers' Compensation Act amounted to £262 lis. 7d. On the output produced this works out to a cost of l-55d. per ton. Future Developments. —The main heading is now within 4 chains of connecting with the coal outcrops on the banks of Cannel Creek. These outcrops vary from 7 ft. to 9 ft. in thickness. The development of the field will in the future be confined to this locality, where exploration work is now being carried on. At the present time it is doubtful whether the mine workings from the main-heading section will connect with the outcrops on the east bank of Cannel Creek. The old dip and east level sections encountered a fault which ran approximately parallel with the main heading. If this fault continues through into Cannel Creek it will be necessary either to connect the outcrops referred to by means of an outside tram from where the main heading connects with Cannel Creek or construct a stone drive from the present workings in the main-heading section. The work so far done in connection with the winning of coal from the districts already opened, also from exploration work carried out, shows that the field is broken up into a series of small basins. In the centre of the basins the coal is generally of good quality, but towards the edges it becomes thin and intersected with stone and pyrites. The undesirable features here referred to render the continuation, of exploratory and development work imperative. General. The'output from the Liverpool Colliery is 7,290 tons 3 cwt. less than the previous year, but the James Mine output shows an increase of 6,839 tons 18 cwt. The loss in output at the Liverpool Colliery is due to the number of working-days being less than those of the previous year. Although the output from the Liverpool Colliery and the number of working-days are less than those of the previous year, the payments made for wages, stores, mine timber, and compensation are higher by £5,194 9s. 2d. This increase is due to the bulk of the output now being obtained from the No. 2 mine, where solid tonnage rates and yardage rates have to be paid. The reduction of working-time has always had a serious effect not only on the output, but on the general average cost of production, for it must be noted that the maintenance of the mines has to be attended to whether full time or otherwise is worked. Accompanying are copies of the plans of the Liverpool and James Mine workings. In conclusion, I wish, to state that all the officers in all branches have performed their duties in a satisfactory manner. lam also indebted, to yourself for valuable services rendered in connection with several matters concerning the mines. I have, &c, I. A. James, Superintendent. The Under-Secretary, Mines Department, Wellington.