3

C—3a

Hitherto the amounts written off for depreciation and allocated to sinking and reserve funds respectively, have not actually been withdrawn from the account, as the amounts have been expended on the development of the No. 2 Mine, and on other works fairly debitable to Capital Account. It is now proposed to withdraw these amounts from the State Coal-mines Account, and to invest them, probably through the agency of the Public Trustee. It will therefore be necessary to raise fresh capital to pay for the work already done at the new mine, and any further work that may be necessary to complete it, and provision for raising an additional £100,000 has accordingly been made in the Coalmines Amendment Bill, which is now being prepared. Details of Operations and Management. Output. Previous to 1904 only a few tons of coal had been produced by the State collieries, and it was during that year that actual trading-business commenced ; since then the State-owned mines have produced 1,960,084 tons of coal, being about 12 per cent, of the total output of all the collieries of the Dominion, which amounted to 14,719,796 tons during the same period. The following is a table showing the annual output of coal from State collieries since their inception :—

eggettes : — 1908 .. .. .. .. .. .. 5,094 bo 1909 .. .. .. .. .. .. 11,889 „ 1910 .. .. .. .. .. .. 4,160 „ 1911 .. .. .. .. .. .. 8,564 ~ 1912 (to 31/3/1912) .. .. .. .. .. ,3,007 „ Total .. .. .. .. .. 32,714 tons. Cost. The cost of production at the Seddonville Mine, while always moderate, has generally shown a declining tendency. The low cost, while doubtless largely due to good management, is also partly accounted for by the character of the coal, which, being soft, requires the use of but few explosives. At Point Elizabeth there has been a marked tendency, especially during the last two years, for the cost to increase. This increase is due to various causes, but is principally attributable to the thinning of the seams, diminishing output, increased inflow of water into the mine necessitating much more pumping, increased rates paid to miners, altered conditions of woiking, &c. The following table shows the cost per ton of coal produced at each of the State collieries from 1905 to 1912 :—

2—C. 3a.

Financial Year. Point Elizabeth. Seddonville. 1903-4 1904-5 1905-6 1906-7 1907-8 1908-9 1909 -10 1910-11 L911-12 Tons. 5.000 77.119 131,816 173,882 233,497 249,442 215,809 ■2i\ ,990 204.872 Tons. 7,190 40,090 46,085 43,287 48,788 60,464 74,464 59,535 66,754 Total output . . 1,513,427 446,657* * Coal out of this total was used for the ma lufactiue of the folli iwing tonnages of briquettes and

Financial ear ending 1st [arc, 'oint liza K.'tl ledi lonville. 1905.. 1906.. 1907.. 1908.. 1909.. 1910.. 1911.. 1912.. s. 5 5 5 6 6 G 7 8 d. 142 9-56 9-25 6-60 6-87 ( J-36 7-17 0-55 B. d. 6 10-51 6 8-18. 5 11-12 6 3-26 5 5-87 5 7-09 5 11-16 5 3-60