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Stone-dusting.—Dusting was carried out at regular intervals during the year, in addition to the daily dusting of the working-places. During the year sixty-three samples of dust were taken and analysed. Dangerous Occurrences. —Nothing of this nature occurred during the year. Stoppings. —All the stoppings between the main intake and return airways were completed in the extended mine, and stoppings were erected in No. 4 West Headings and Nos. 2 and 3 East Headings. Plant.—During the year the main No. 3 Extended Mine haulage engine was transferred inbye and endless haulages were installed in Nos. 2 and 3 East Sections, a pump and direct haulage in No. 4 West Section, and direct- haulages in Nos. 2, 3, and 4 East Headings as close to the faces as possible, whilst a Korfmann coal-cutter was installed in each of Nos. 2 and 3 East Sections and one electric borer in No. 2 East Section. During the year 100 new mine skips were put into the mine. Private Railway-line.—Maintenance work was carried out on this line during the year, whilst the New Zealand Railways bridge gang did necessary repairs to bridges. It was also necessary to bring in the New Zealand Railways maintenance gang at the week-ends to try and maintain this line in running-order. Painting of the bridges is just about completed. Maintenance cost of the line is exceedingly high. Bus Service. —A passenger-bus service was inaugurated from Ngaruawahia to the mine in June, 1946. Housing and Mine Buildings.—These were maintained in good order during the year. Several housing loans were granted to employees to build their own homes. A new house has been built and completed for the Surveyor, whilst a start has been made on a new residence for the Manager in Ngaruawahia. The new mine office was completed and occupied in October, 1946. The old office is now being used as an office for the Engineer and Manager and as a stores room. Mechanization. —During the year a modified scheme of mechanization was put forward and approved. Modified because of the available coal. This scheme incorporated the use of loaders, coal-cutters, and electric boring-machines. Due to the inability to obtain supplies and materials quickly from overseas, it has only been possible to install two coal cutters, one each in Nos. 2 and 3 East Sections, also an electric borer in No. 2 East Section. Up to the present time, however, I expect to receive another three electric borers within the next five weeks. There is also another coal-cutter on order, but it must be months before we receive this. The loaders, according to advice, will not be available until early next year. The long periods which elapse between the time of ordering materials and obtaining delivery of same is the only reason why mechanization of this mine is being delayed. Future Development and Boring.—During the latter part of the year arrangements were made to put down several boreholes on the west side of the No. 3 Extended Mine to determine the existence of further coal. Any such coal would have to be worked from the present Extended Mine. A commencement has been made with the first borehole. No. 2 Mine is nearing exhaustion, and with a reasonable daily output this mine would be finished in 1948. Negotiations were carried out between the owner and representatives of the Mines Department with a view to boring an area to the north of the present No. 2 Mine. Arrangements have now been made to have this work started. Also surveys of the proposed haulage rope road and the necessary earthworks have been completed, so that if the bores prove successful we are in a position to go right ahead immediately and have this mine, which will be known as No. 2 Extended, partially developed before No. 2 Mine is finished. A new road is being constructed to the No. 3 Extended Mine entrance. This, when completed, will be 92 chains long and should be a. big advantage, since the present road, terminates approximately 10 chains from the bathroom. In addition, the men have then to walk a distance of 35 chains to No. 3 Extended Mine entrance. With the completion of the new road the buses can take the

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