328

They find that the receipts from the present working are stated to be inadequate to pay the expenses; that a prejudice has been excited in the minds of many of the public in consequence of the coal produced on the first working of the mine having been of a very inferior description; but the Committee are at the same time informed that almost all the persons who have once purchased the coal since the mine was worked by Mr. Lewis, continue to use it.

Owing to the low price at which Newcastle coal has for some time past been supplied to the public, in consequence of its being brought to Otago in cattle ships, the demand for native coal is much lessened. Your Committee are, however, of opinion that the native coal, were the mine properly and extensively wrought, would afford a cheap and valuable fuel.

The attention of your Committee has been especially directed to its value in developing the resources of the Province by its use for manufacturing purposes; amongst which the proximity of the mine to the sea has suggested the manufacture of salt. Good potters’ clay and ironstone are known to exist in the neighbourhood. It is asserted, but without sufficient evidence for your Committee to form a decided opinion thereon, that the coal is well adapted for the purpose of burning bricks, tiles, and other pottery.

The chief obstacles to the production of the coal at a low rate with a remunerative profit to the proposed lessee are—1stly, The high rate of freights; 2ndly, The difficulty of getting the mineral from the mine to the place of shipment in consequence of the badness of the road, which, from the nature of the soil it passes over, cannot be effectively improved; and 3rdly, The want of a suitable wharf and buildings to land and store the coal in Dunedin.

The first of these difficulties would probably disappear and correct itself were the mine extensively wrought.

To obviate the second it has been suggested, with which suggestion your Committee agree, that a railway from the mine to the bank of the Clutha River, a wharf there and discharging apparatus, should be constructed, the cost of which is estimated at £1800.

The third obstacle could be removed by the construction of a wharf at Dunedin on the beach near the mouth of the culvert.

Your Committee, looking to the great extent of country in the Province over which coal is known to exist, extending from the Waitaki to the Mataura Rivers, and inland to the Hawea Lake, are of opinion that the satisfactory proof of its value as a fuel for domestic and manufacturing purposes, would tend more to develop the future resources of the Province than almost any other single circumstance—cheapness of fuel being of the utmost importance in all manufacturing and mining operations.

Your Committee are further of opinion that it would be difficult to find in the Colony or to procure the services from the Home country of a gentleman of such extensive experience in the working of coal mines as Mr. Lewis, the proposed lessee of the mine; and that were he to fail in the present undertaking, from the want of sufficient assistance and support from the Government, the working of the native coal would probably be postponed for an indefinite time, and a source of great wealth to the Province and revenue to the Local Government be allowed to remain unproductive.

Mr. Lewis has applied to the Waste Land Board and obtained the promise of a lease of 80 acres of the mineral land; and he desires to purchase the surface right of 50 acres of land near the place of shipment on the Clutha, for the erection of the necessary buildings to carry on the working of the mine.

The Land Regulations provide for the sale of mineral land which may be put up to auction, subject to any existing lease. The lease is therefore an implied promise to sell the mine; and the proposition as to the sale of the surface alone cannot be complied with, as every sale of land must be absolute and entire.

The Committee are of opinion that it is not advisable to grant such a lease, to part with the freehold, or to sell the surface of any portion of the Clutha Coal Field—the Committee believing that the Coal Field may ultimately become a most valuable Provincial estate.

They would therefore recommend—

Firstly. That the Coal Reserve at the Clutha, amounting to about 7000 acres, should be purchased by the Provincial Government in the name of the Superintendent, and that the necessary sum should be placed on the estimates for that purpose.

Secondly. That a sum not exceeding £3000, should be placed on the Estimates for the purpose of effectually working the Clutha Coal Field, and constructing the railway as suggested.

Thirdly. That a suitable site for a Coal Wharf in Dunedin should be provided, and the necessary erections be made thereon.

Fourthly. That a lease should be granted to Mr. Lewis upon the usual terms of mining leases; and that he be required to pay interest for any further outlay of public money for improving the Coal Field and constructing Wharves, or other necessary erections. The lease of the mineral not to exceed 100 acres, and that a power to enter and re-possess, on non-payment of rent royalties or interest, be a condition of the lease.