C— 2.

The output of the several classes of coal mined in each inspection district is summarized as follows

CO-OPERATIVE MINING, STATE COAL RESERVE. Nineteen co-operative parties working portions of the State Coal Keserve near Greymouth produced, during the year 1940, 95,553 tons, the number of men employed being 177. During the previous year nineteen parties produced 101,297 tons, there being a decrease this year of 15,744 tons. In the initial stages of co-operative mining the men were able to commence operations with a very small capital outlay, but much of the easily won coal has now been extracted and in many cases it is now necessary for the parties to carry out considerable development work before production is possible.. The Government's policy is to assist all genuine co-operative mining enterprises by making available technical advice, geological data, and, where necessary, financial aid for development and plant. Up to the end of 1940 co-operative parties have produced a grand total of 1,538,294 tons of coal, and have in the same period paid royalties to the State amounting to £72,846. STATE COAL-MINES. The output from the State coal-mines for the 1940-41 financial year was the highest recorded in the history of the Department, the quantity being 281,506 tons. Two new collieries in the North Island were acquired during the year, one at Mangapehi from the Mangapehi Coal-mining Co., Ltd., and the other near Ohura from the receiver for the first debenture-holder of Egmont Collieries, Ltd. The net profit for the year ended 31st March, 1941, after making provision for interest and depreciation, amounted to £25,027, an increase of £10,187 compared with the previous year. A sum of £6,320 was transferred to the sinking fund, leaving a net surplus of £18,707 for the year. This amount is subject to income-tax, social security charge, and national security tax, and a reserve of £18,000 has been provided accordingly. An amount of £8,236 covering these taxes on the profit made for the year ended 31st March, 1940, was paid out during the financial year. The Liverpool Colliery worked 233 days during the year, an increase of twenty-four days compared with the previous year. At the James Colliery work was carried out on 246 days, an increase of 20 days compared with the previous year. The Strongman Colliery worked 247 days during the year, an increase of 22 days compared with the previous year. The Mangapehi Colliery, which commenced production on 27th May, 1940, worked 209 days during the year. Development work has been carried out steadily at the Tatu Colliery on all available days since the inception of operations. The decision of the Government, soon after coming into office, to develop and open up the Strongman Colliery at Greymouth, at present producing 400 tons of coal daily, has been amply justified by the strong and unsatisfied demand for this class of coal. The coal won from this colliery is excellent in certain types of gasworks owing to its non-swelling characteristics, it is a splendid steam and locomotive fuel, and householders demand it in preference to all other coals on the market.

2—C. 2.

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Output of Coal during 1940. Total Output Class of Coal. Northern West Coast Southern End ofmO. District District District Total. (North Island). (South Island). (SouthIsland). Tons. Tons. Tons. Tons. Tons. Bituminous and sub - bitu- 81,411 1,063,146 .. 1,144,557 53,973,586 minous Brown .. .. .. 788,559 56,118 388,133 1,232,810 35,683,966 Lignite .. 4,793 133,939 138,732 5,678,616 Totals for 1940 .. 869,970 1,124,057 522,072 2,516,099 95,336,168 Totals for 1939 802,705 1,033,342 506,592 2,342,639 92,820,069