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The company has now transferred its machines to the Midway Pit, adjacent to the main highway and within a mile of the works. From the Midway Pit, formerly operating by 1 man, a daily output of 120 tons is now being mined mechanically. Waimumu Pit (S. I. Allison (Permit), Manager).—Operations were confined to working a high face, but later the bottom strip has been worked back from the far corner of the pit, but as the lower 3 ft. of the seam is of poor quality with muddy veins, this is being left and only a 6 ft. layer worked at present. Although the face is hand operated and loaded, electric drilling-machines are installed, and a steam-shovel is to be converted to do the loading at the face. A substantial bin and screening plant are in the course, of erection adjacent to the pit, and a crusher may later be considered to meet trade requirements. Newvale Pit (R. A. Adair (Permit), Manager).—A rapidly increasing face has been opened out, and although no machinery for drilling or operating at the face is in use, a large output is obtained from a face 15 ft. high. It is intended later to grade the road down and work the lower strip of the seam, which is up to 40 ft. in thickness, and then to back-fill the pit as future overburden is removed. This pit is operating close to the Waimumu Co., some eight miles from the Gore-Mataura. Iledgehope Pit (A. Maxwell (Permit), Manager).—The face, 16 ft. to 18 ft. in height, has been advanced as a strip alongside previous back-filling of the pit, but as further strips will involve increased overburden of a hard nature a new area of 40 acres has been bored showing 22 ft., and a shift to this will soon be made. The face is totally hand-operated, but a steady good output is maintained. Boghead Mine, Mataura (E. W. Moseby (Underviewer), Manager).—Development continued in levels to each side of the lower section of the dip, where the usual uniform conditions were present. The matter of second work to the best advantage in this thick seam under good farming-land, with upper measures consisting of gravels, &c, was discussed, as it must soon be undertaken, and a system which should enable a good percentage of the seam to be recovered decided upon. Terrace Mine, Balfour (W. McJ. Dixon (Permit), Manager).—Operations of a small intermittent nature have continued at this mine to meet local requirements. The general underground conditions are damp, and the coal is of good hard quality, with a well-defined parting forming the roof of the places, with a good thickness of top coal. Glenlee Mine, Waikaka (E. McGregor (Permit), Manager).—Development with a small output continued to the west off the extreme end of the horse road, but early in December fumes from a dormant fire in old workings resulted in the area beyond this connection being sealed off. Development will now be in a block of solid coal to the east of the horse road at a short distance from the portal, and as a shallow syncline follows the sourse of the haulage road, this will form a suitable barrier for the new development. Waimeamea Mine, Ore.puki (M. Fowler (Second Class), Manager).—Work in the first part of the year was confined to recovery and reconditioning of the old Orepuki Dip drive, unwatering of these workings, and establishing a suitable ventilation circuit. Tn conjunction with this, opencast mining was applied to a small area adjacent to the Waimeamea Stream. Following the reconditioning of the dip for 6 chains, two levels to the west were roaded and the extraction of small pillars left by the old company commenced inbye. An area to the west of the portal and adjacent to the stream has been stripped of overburden, and from this strip, 4 chains by 1 chain with the seam 7 ft. to 8 ft. in thickness, which will be worked by the opencast method, the company hopes to maintain the output while the lower section of the old dip is dewatered and reconditioned. This 3-chain section is subject to floor heave and the condition of the timber is badly crushed, the result of breaking the floor to.regrade the dip. On completion of this work it is intended to prove the- fault crossing from the east. The seam is good hard quality of excellent appearance, and places 7 ft. high to a 4 in. bed of hard oil-shale which forms a good roof are worked, but a further 2 ft. of coal overlain by another oil-shale layer 9 in. thick exists, the main roof being of a treacherous nature. Ohai-Nightcaps Opencast Mines. —Operations in the Hardmac and Liberty Pits terminated during the.year when all coal that could be economically won was extracted. Brazier's Pit. —This also ceased production for a period, but later the Kaireka Coal Co., following a boring programme and erection of a good bin and screening plant, with installation of electric power, commenced to mine coal from the area, but heating in old Nightcaps mine workings caused a halt, and operations were transferred to another area that had been stripped. This area has proved very disappointing, and it appears that the large reserves stripped are not the true seam, and production for" the time being has stopped, and this and borings are being investigated. Black Diamond State Opencast (M. Dixon (Deputy), Manager).—Stripping operations on a large scale, witli various machines engaged, have been carried out on this area and a good output won (luring periods of production.

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