C.—2

The output for 1934 is only 19 per cent, below the peak production of New Zealand mines, which occurred in 1930. A notable feature, however, is that the output of the West Coast mines remained practically stationary, while the production of the North Island mines increased by 28-8 per cent, and that of the mines in Canterbury, Otago, and Southland increased by 14-2 per cent. The quantity of coal imported into New Zealand shows a small increase, the figures being 99,272 tons for 1933 and 100,715 tons for 1934. Although the industry is not yet in as satisfactory a position as it should be, I am being continually subjected to considerable pressure to grant further coal leases. I have, however, adhered to the policy laid down by the Government some years ago that the opening of new mines should be discouraged as far as possible, and in this policy I know the Government has the general support of the coal-mine owners and the United Mine workers. . During the year a second Inspector of Coal-mines for the West Coast District was appointed, as it was found that the work was unduly arduous for one officer, and that his visits to many small mines were too infrequent. I am happy to state that since the explosion at the Dobson Mine on sth January, 1934, there has been no other similar disturbing_ occurrence. The industry has been particularly free from industrial troubles during the year under review, and recently the coal-mine owners granted their employees a 5-per-cent. increase in wages. _ _ _ . The output of the several classes of coal mined in each inspection district is summarized as follows : —

CARBONIZING AND BRIQUETTING. The coal-carbonizing and briquetting plant operated at Rotowaro by Waikato Carbonization, Ltd., was closed down temporarily during the summer months when stocks of carbonettes and oil were sufficient to supply the summer demand. In April, 1934, operations were resumed, and the following figures show the production for the year : — Raw coal treated .. •• •• 13,324 tons. Carbonettes manufactured .. .. 8,670 tons. Tar treated .. •• •• 183,645 gallons. Oil made.. . . •• •• 123,680 gallons. Pitch made . . • • • • 246 tons. On account of the fact that the Railway Department did not renew its contract for the supply of carbonettes, the domestic market, which is a seasonal one, had to be concentrated upon. The all-round excellence of the fuel for the domestic trade is proven by the increased tonnage being sold. The fuel oil is also finding a ready sale, and research is being conducted with a view to producing Diesel oil, disinfectants, &c. . . Further plant has been installed for the purpose of increasing the yield of pitch from the tar.

6

Output of Coal during 1934. Total Output Glass of Coal. Northern West Coast Southern Enl j of Distriot District District Total. (North Island). (South Island). (South Island). Tons. Tons. Tons. Tons. Tons. Bituminous and sub-bitu- 94,938 736,764 .. 831,702 48.152,502 TTllTlOll^ Brown •• 712,475 45,191 346,302 1,103,968 28,671,583 SgXe !! 1.484 123,161 124,645 4,898,057 Totals for 1934 .. 807,413 783,439 469,463 2,060,315 81,722.142 Totals for 1933 .. 626,926 783,385 410,947 1,821,258 79,661,827