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The colliery worked on 262J days for the year, making an average of 504 days per week. The difference between time worked and the possible working-time is accounted for as follows : Pay-Saturdays, 27; union holidays, 16; want of shipping, 4; slips on railway, 3; cavil, day. The average numbers of men and boys employed in and about the mine were as follow : Underground —Coal-hewers, 104; deputies, shiftmen, and truckers, 85. On the surface, 43 men and 18 boys. In addition to those employed in connection with coal-winning there were employed on property and development-work 14 men and 1 boy, making a total of 246 men and 19 boys. The total payments made on wages account, in connection with coal-winning, exclusive of stores, compensation, and timber, amounted to £46,826 4s. 7d. The coal-hewers' average daily earnings (gross) were 19s. 0"42 d., and the net average daily return to each man was 17s. 4'66d. Underground Development. The output from this colliery was obtained from three mines—namely, Nos, I, 3, and 3a. In the No. 1 Mine good progress has been made with the development-work in a northerly direction, the coal Avon therefrom being ol' excellent quality and thickness, and the inclination of the seam is also not so great as to the south, thus making working-conditions much more favourable. The pinching-out line of the scam on the eastern side of the field does not appear to have altered its course, for when the workings have been driven a certain distance they have to he stopped owing to the thinning of the seam and the intrusion of stone bands. The Morgan seam, which is connected with No. 1 Mine, has only been worked intermittently during the year, the early part of which work was confined to making a connection for ventilation purposes. Since then, owing to shortage (if miners, and also through failure to arrive at a working agreement, little or no development-work has been done. Latterly three pairs of miners have been employed in the winning-places on day wages. The No. 3a Mine has been worked continuously throughout the year, but owing to the limited area, through the pinching-out of the seam in an eastern course and the coming-in of stone bands in a westerly course, the output has been small. The output from the No. 3 Mine, which is situated near the storage-bins, was obtained from coal won from solid and pillar workings. During the year a downthrow fault was encountered in the main level west, and with the object of proving the displacement a prospecting-drive was started and driven approximately three-quarters of a chain, but owing to an influx of water and to the strata at the face of the drive resembling the strata about 100 ft. above the seam, it was deemed advisable to slop this drive, as the small area between this fault and the other larger fault would not warrant the expenditure of continuing it. In the winning heading a downthrow fault was struck; the fault was driven through for a few yards and a hand-drilled hole put down. At about 10 ft. down the seam was struck, and drilling was continued, proving the seam to be over 10 ft. thick. Exploration. The work done in tin's connection during the year has been limited to surface examination in different parts of the reserve, and drilling of one hole with the diamond drilling plant, approximately 12 chains westward of No. 3,\ Mine. Two attempts were made to drill this hole to a suitable depth, but owing to the broken nature of the strata, evidently due to faulting, the hole was abandoned at 80 ft. Since the starting of this colliery eleven bores for prospecting purposes have been sunk, aggregating 3,371 ft. Accidents. A number of minor accidents occurred at these collieries during the year, but there was none of a serious nature. Surface Works. The whole of the plant, machinery, and buildings have been maintained in efficient workingorder, and during the year the following plant has been installed : (a) Self-acting endless-rope haulage to deal with the output from the steep workings at the No. 1 Mine; (b) an electrically driven endless-rope haulage to deal with the output from the "Morgan and Upper seams; (c) an electrically driven fan at the No. 3a Mine ; (d) fan and engine at the No. 3 Mine, situated near the bins; (c) self-acting endless-rope haulage at the No. 3 Mine; (/) the erection of ten workmen's huts, Manager and deputies' office at the No. 1 Mine, also the housing of the plant referred to in (b), (c), and (d). Change and Bath Houses. The change and bath house referred to in my last annual report was completed early in the year, and is giving entire satisfaction. During the year a change and bath house was erected for the men employed at the Upper section, on the same lines as the first mentioned, but on a much larger scale. In each bathhouse the showers are fitted with hot and cold water, so that the temperature of the water may be regulated to the satisfaction of the men washing therein. Shaet-sinkino at Charming Creek. In view of the near exhaustion of the Point Elizabeth Colliery, and with no other area of coal available for exploitation from the present mine-openings, the question was discussed as to what position the depots would be placed in with regard to coal when operations ceased at the Point Elizabeth Colliery. After carefully reviewing the situation it was decided that the coal in the Charming Creek area should be further tested. The field has been systematically bored, and a moderate area of coal proved, but in order thoroughly to test the'quality and