C.—2.

The estimated gold-production for the past eight years has been as follows : — Year. Oz. Year. Oz. 1930 .. .. 120,931 1934 .. .. 160,248 1931 .. .. 129,861 1935 .. .. 165,277 1932 .. .. 166,354 1936 .. .. 164,575 1933 .. .. 161,755 1937 .. .. 168,487 It will be noted that for the year under review there has been an increase in goldproduction over the previous year amounting to 3,912 oz. I am also pleased to point out that the production for 1937 is the largest recorded in the past eighteen years. As in the previous year, quartz-mining and alluvial-mining both showed appreciable decreases, the reductions being 3,062 oz. and 6,476 oz. respectively. On the other hand, dredge-mining was responsible for a substantial increase of 13,450 oz. The gold output of the Martha Mine was 54,552 oz., an increase of 1,444 oz., while for the Waihi Grand Junction and the Golden Dawn Mines reductions of 2,896 oz. and .1,680 oz. respectively were recorded. The principal quartz mine in the South Island, the Blackwater Mine, also showed a decrease of 720 oz. The substantial drop in the returns from alluvial mining was due to the following three factors—the closing of the King Solomon Mine, the extremely dry summer in Otago and Southland, and the heavy reduction in the number of prospectors engaged under the Labour Department's schemes. Twenty-two dredges operated in New Zealand during 1937, as compared with only seven in 1933. During the present year four new, modern dredges, all of which are substantially larger than any dredge ever yet erected in New Zealand, should come into production. A fifth machine of similar capacity is also under construction. I therefore look forward with confidence to the annual output of gold from dredging being doubled within the next year or two. In my last statement I made reference to the action taken by the Government to provide ample electric power for industrial and domestic purposes on the West Coast of the South Island, and the importance of the work from the point of view of the gold-mining industry. lam happy to record that a Diesel plant has now been erected by the Public Works Department at Dobson and has been in operation for some time. The erection of the transmission line from the Lake Coleridge Hydro-electric-power Station is also well advanced. The following statement shows the quantity and value of bullion-production, the dividends paid by registered companies, and the number of productive claims and gold-dredges during 1937 and 1936 : —

MINING LEGISLATION. During the year the Mining Amendment Act, 1937, was passed by Parliament. Suggestions for improvements to the existing law were invited from all affected parties. These suggestions were then reviewed by a conference at which all mining interests and the Department were represented. The recommendations of the conference were incorporated in a Bill, which I am gratified to record was given an excellent reception. The measure as passed comprises forty-two sections, a number of which are merely for the purpose of clarifying the existing law and removing minor administrative difficulties.

2

Dividends Number of ProducProduotion of Bullion. paid by Registered tive Claims and Class of Gold-mining. Companies. Dredges. 1937. j 1936. 1937. 1936. 1937. 1936. I Oz. £ Oz. £ £ £ Quartz .. .. 534,424 710,421 526,661 732,869 126,088 151,336 77 77 Alluvial.. .. 27,142 200,024 33,618 244,640 14,683 16,436 2,753 2,928 Dredging .. 50,902 409,298 37,269 295,078 55,533 62,335 22 21 Totals .. 612,468 1,319,743 597,548 jl, 272,587 196,304 230,107 2,852 3,026