C.—2a

Bays worked. —The mine during the year worked on 2SBj days, being L 6 days more ba&n the previous year. The possible working-days, based on eleven days per Fortnight and excluding union holidays and pay Saturdays, were 271. The difference between the days worked and the possible working-days is accounted for as follows : Extra holidays at Christmas, 2 ; back Saturdays, 26 ; shortage of wagons, 2 ; visit of British Rugby team, 1 ; stop-work meeting re Dobson, 1 ; death of mine employee, i day : total, 32 J days. Employees. —In connection with coal-winning the average number of persons employed in and about the mine was 78, made up as follows : Underground —Coal-hewers, 31 : deputies, shiftmen, and truckers, 28. On the surface—ls men and 4 boys. In addition to those employed on coalwinning there were on an average 7 men and 2 boys employed on prospecting work, making a total for the colliery of 81 men and 6 boys. Expenditure. —The total expenditure in connection with coal-winning for wages, stores, minetimber, and compensation, together with cost of electric power and coal used on works, amounted to £28,148 2s. 10d., an increase of £1,304 11s. 7d., when compared with the previous year. In addition to the amount expended on coal-winning, £1,204 os. 10d. was expended on prospecting work between the Nine and Ten Mile Creeks, also, the crossing of a fault in the mine. Coal-hewers' Average Daily Earnings. — The coal-hewers' average daily earnings (gross) were £1 12s. lid., and after deducting stores (explosives) the net return was £1 6s. 7d., an increase of lid. per day compared with the previous period. Days worked by Coal-hewers. —The total number of days that could have been worked by coalhewers was 8,115 ; the days worked were 6,885|, and the number lost, including those lost through sickness and not working on back Saturdays, was 1,229f. Daily Output. —The average daily mine-output was 175 tons 15 cwt., a reduction of 21 tons 11 cwt. per day compared with last year. The average daily output per coal-hewer was 6 tons 1J cwt., an increase of 3f cwt. per day when compared with the previous year. Deficiencies. —The total amount paid under the minimum-wage clause during the year was £341 Is. Bd. This works out to a cost of l-92d. per ton. Accidents.— During the year there were a few minor accidents, but not any of a serious nature. The payments made at this colliery under the provisions of the Workers' Compensation Act amounted to £598 ss. On the output produced this works out to a cost of 3-38 d. per ton. Underground Workings. —The output from this colliery was obtained from the development of workings in the crosscut section, and the extraction of pillars from the old dip and east-level sections. The work of pillar-extraction in the two latter sections has been completed, and the old workings flooded. In the crosscut section development work consisted of the following : (a) Extension of the south level and the workings to the rise towards the fault; (b) the opening up of a dip section from the east level and the extension of workings in the direction of Canneli Creek. With the exception of a stone band in the seam near the roof in the south-level section, the seam has been fairly uniform both in quality and thickness. In the dip section the seam has been fairly uniform in thickness, but somewhat variable in quality. In the dip heading also in the levels to the right the coal has been hard and of good quality. In the levels to the left of the dip heading the coal has been soft, and in consequence very little screened coal was produced from these places. This belt of soft coal appears to be about 3 chains wide, and arrangements will be made to drive as few places as possible through it. The main dip heading in this section is within 3 chains from an upthrow fault which has a displacement of approximately 190 ft. A good deal of surface prospecting work has been carried out along the line of outcrops beyond the fault, and it is regrettable to report that the area in this locality is so intersected with faults, and the areas between the faults are so small that it is doubtful whether further development in this direction is warranted. In addition to the last-mentioned area, prospecting drives were also driven on some outcrops on the south-east side of the present mine-workings. The seam in the prospecting-drives was of a good workable thickness, but the quality of the coal was poor owing to the high sulphur content. Genebal. The output from the Liverpool Colliery is 10,317 tons 17 cwt. less than the previous year, and that of the James Colliery 1,573 tons 12 cwt. less. The loss of output at the Liverpool Colliery is due to a reduction in the number of working-days, also to the average number of coal-hewers employed being less than the previous year. The number of days worked at the James Mine is greater than that of the previous year, but the average number of coal-hewers is less, thus accounting for the reduction in output. In conclusion, permit me to say that the members of the present staff have performed their duties in a satisfactory manner ; and I am also indebted to yourself for valuable services rendered in connection with several matters concerning the mines. I have, &c, I. A. James, Superintendent. The Under-Secretary, Mines Department, Wellington.

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