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The increases for the several districts are as follows : Northern District, 16,961 tons; West Coast District, 84,281 tons; Southern District, 24,112 tons: total, 125,354 tons. The total production for the colony during last year for the various classes of coals is as follows :— Tons. Bituminous and semi-bituminous coal ... ... ... ... 845,046 Pitch coal ... ... ... ... ... ... ... 25,245 Brown coal ... ... ... ... ... ... 427,172 Lignite ... ... ... ... ... ... ... 65,239 Oil-shale ... ... ... ... ... ... ... 2,338 Total ... ... ... ... ... 1,365,040 The gross recorded output of coal and lignite (including oil-shale) now exceeds seventeen millions of tons. In the North Island the production for last year from the principal mines was as follows : Taupiri Coal-mines (Limited), 89,263 tons ; Hikurangi Coal Company (Limited), 39,119 tons; Ngunguru Mine, 18,017 tons; and Kiripaka Mine, 14,138 tons. The Middle Island is the chief source of the coal-output of the colony, the West Coast Mining District affording the supply of bituminous coal. Here the collieries of the Westport Coal Company (Limited) maintain their pre-eminence, and last year produced 520,086 tons. Brunner Colliery had an output of 116,714 tons, and Blackball Colliery 99,597 tons. The production at this latter place is limited to the capacity of the aerial tramway, by which the coal is transported to the railway; but when railway connection with the colliery is established there is every likelihood of an increased output. In the southern part of the Middle Island the collieries at Kaitangata still hold first place in point of magnitude. The output for the year was 118,050 tons —the second largest in the colony —followed by Nightcaps Colliery with 39,934 tons; Allandale Colliery, 21,916 tons; Fortification Colliery, near Milton, 16,522 tons; Lovell's Flat Colliery, 15,662 tons; Saddle Hill Colliery, 11,955 tons ; Jubilee Colliery, Fairfield, 11,587 tons ; and Walton Park Colliery, Fairfield, 10,283 tons. A large number of small pits are worked for purely local requirements, with outputs varying from a settler's personal requirements to nearly 10,000 tons. The Shag Point Colliery, which for many years was one of the chief producers of coal in the South, has had very serious difficulties owing to an influx of water. The merchantable coal has also been practically exhausted, present operations being confined to the working of a limited area of coal above the water-level. The output of oil-shale at Orepuki fell off very considerably during the year in consequence of suspension of operations at the oil-works. The total number of mines returned as having been worked during the year is 180, employing 2,885 persons. Many of the pits are mere quarries, at which lignite is obtained for local use. Boring-operations by the Greymouth Harbour Board, to prove the continuation of the Brunner coalfield in the direction of Greymouth, were referred to in my last Statement. I learn that in the first borehole at Dobson coal 4 ft. 9 in. in thickness was struck at a depth of 556 ft., and a second seam at 572 ft., which had a thickness of 12 ft. 6 in. A second borehole, 44 chains nearer Greymouth, and consequently further to the dip of the measures, struck coal at 1,140 ft. The seam was 2 ft. 6 in. thick, and is probably identical with the upper seam struck in the first borehole. Unfortunately the larger seam was not bored to, as loose material falling from the sides of the bore prevented further progress. A third borehole, 48 chains nearer Greymouth than the second hole, and still further to the dip of the measures, has been drilled to a depth of 2,165 ft. (the limit of the available boring-rods) without reaching the coal, but some crude petroleum and inflammable gas have come to the surface. These indications appear to point to coal below. Small pockets of petroleum sometimes occur above coal-seams at considerable depth.

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