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Output. The coal won from the mine during the year amounted to 59,535 tons, and after deducting mine consumption and waste there remained available for market 51,550 tons. The briquette-works at Westport utilized 8,316 tons of fine small coal in the manufacture of briquettes and eggettes. Days worked. The mine during the year worked 221 days 4 hours, which is a considerable decrease in comparison with the number of days worked last year. The average time worked per week was therefore 4J days. The miners' daily average earning for the year was 17s. per shift, being an increase of 6d. per day over last year. The number of men and boys employed in and about the mine throughout the year averaged 104. There were no accidents of a serious nature. Plant. The plant and machinery in and about the mine have been maintained in good and efficient workingorder. Underground Development. During the year very little development-work has been done. A small area in the West section, where five pairs of miners are employed, is being opened out, the coal proving to be of excellent quality. A dip heading was also started off the main dip heading in the direction of borehole No. 7 on the present haulage-road, where coal 16 ft. thick has been proved. This heading when driven a distance of 2£ chains struck a fault, which has been found to displace the seam considerably. In consequence of this, and of the large quantity of water given off, it was not profitable to extend the heading, as the small area available would not warrant any expensive work being undertaken to reach it. The chief work done in addition to the above has been the extraction of pillars and bringing back top coal in the Cave section. Exploration. With the object of proving the extent of workable coal in the Charming Creek area, several boreholes have been put down, the approximate positions of which are shown on the accompanying plan. Now that boring operations in the line first hud out have been completed, the following summary of results may be given : No. 1. which is situated in the central part of the field, proved the existence of a seam of coal 20 ft. thick <).t a depth of 90 ft. No. 2. about half a mile eastward of No. 1. was suspended at 315 ft. in coal-measures, bul it is probable thai the coal horizon has been passed through in this bore. Nos. 3 and 1. at the extreme western portion of the field, failed to find coal. The former at 370 ft. struck gneiss, as also did tin' latter ai 525 ft. No. 5, which is approximately 21 chains westward of No. 1, pierced a2O ft. seam of coal at 75 ft. No. 6. which is 35 chains westward of No. 5, penetrated a seam of coal 2 J ft. thick at a depth of 226 ft., which is evidently the :>(ift. se;im of bores 1 and 5 pinching out westward, gneiss being struck at 330 ft. No. 7. situated 28 chains south-east of No. 1. was suspended at a depth of 175 ft., the strata bofed through not being coal-bearing. The boring, so far as it has gone, proves that the area of workable coal is somewhat limited, having a width of about half a mile from east to west. The length from north to south is as yet unascertained. In order to thoroughly test the field it is necessary that several more bores be put down north or south of bores 1, 5, and 6. ■ A site for bore No. 8 has been selected 20 chains north, midway between Nos. 1 and 5, and boring operations have been commenced. General. One great drawback experienced in connection with the working of this colliery is the difficulty of finding a profitable market for the amount of small coal produced. When rescreening for making nuts a large amount of small coal is run to waste, which, previous to the closing-down of the briquette-works at Westport, was utilized for the manufacture of eggettes and briquettes. In reference to the reduced output, it is chiefly attributed to the shorter time worked and a reduction in the number of coal-hewers at the beginning of the present year. In conclusion, permit me to say that the officers in all departments have discharged their duties in a most satisfactory manner, and the Inspecting Engineer has rendered valuable assistance in connection with the working of the mine and the prospecting of the new field. I have, &c, The Under-Secretary, Mines Department, Wellington. I. A. James. Manager