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Sess. 11.—1887. NEW ZEALAND.

MINES REPORT BY THE MINISTER OF MINES, THE HON. W.J.M. LARNACH, C.M.G., TO HIS EXCELLENCY SIR Wm. F. DRUMMOND JERVOIS, G.C.M.G., C.B., GOVERNOR.

Wellington, Bth October, 1887. Your Excellency,— I have the honour to lay before you my report on the mining industries of the colony. Ido so with some feelings of pleasure; for, notwithstanding the long period of depression which has hovered around almost every kind of enterprise throughout the world, it will be of interest to learn that the mining industry of New Zealand has not been affected to any appreciable extent. The reason is somewhat obvious: The mining industry is not governed by the uncertainty of the seasons, which chiefly regulates the state of the markets in respect to the products of agricultural and pastoral or nomadic pursuits. In the history of all countries there has been, and always will be, periods of progress and depression, plenty and want, enterprise and stagnation, arising mainly from causes which cannot be foreseen, and which can only affect the mining industry when the supply of any of its products has overgrown the demand for the same over a term of successive years, as has been the case in respect to the production of copper. The extraordinary yields of late years from the mines of America and Spain of copper-ores, together with an improved method dealing with the extraction of copper from pyrites, and utilizing the sulphur contained therein, have increased the supply to such an extent that an enormous quantity of this metal has been held over by dealers from year to year, under the belief that the great annual yield from the richer mines would diminish, and consequently reduce supply within the limits of consumption, and thereby improve the value of copper. It is a fact worth noting that over a long term of years no other metal or mineral has been similarly affected in any great degree by a like cause. Regarding as I do the mining industry as the most important one of all others to this colony, I will briefly show the many advantages likely to accrue from its further development. The area of lands in the colony, exclusive of Native lands, prior to the 31st March, 1887, was ... 49,975,271 acres Of which on the latter date there appeared to have been sold ... ... ... 12,718,685 „ 37,256,586 „ And set apart as reserves ... 5,715,930 acres And for selection and settlement 11,920,365 „ 17,636,295 „ Which left on hand for future disposal ... 19,620,291 „

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The greater portion of this large acreage is composed of very mountainous country, altogether unfitted for agriculture, and much of the land unsuited for pastoral purposes; but, nevertheless, this land, although of a mountainous and rugged nature, may prove to be of far more value to the State and the people of the colony, by the mineral wealth contained therein, than the richer land that has already been disposed of for the purpose of agriculture. It is chiefly in the hilly and mountainous land, so far as I have been able to inform myself, that the greater portion of the mineral wealth of this colony lies ; and such land can only become valuable in proportion to the energy and activity shown in the development of the mining industry : and concurrently with its progress so will the pursuits of agriculture march onwards; for a steady, hardworking mining population — and such is its general characteristic — will always make and establish for the farmer and the squatter the most ready market for their produce. I fear that there are people in the colony, who labour under the belief that the mining industry does not offer a safe and legitimate means for the investment of capital. I hope I shall be able clearly to show how thoroughly utopian and fallacious are such ideas, and that mining ventures and all business appertaining to them can be carried on upon as sound and safe a basis as investments and transactions in any other industry or business in the world. For the sake of comparison let me first begin with the agriculturist, and follow to the end the result of his pursuit in this colony. According to our most recent statistics the area of land under cultivation, inclusive of grass and all other crops, is 1,182,680 acres, and the estimated value of the produce is £2,958,387, from which I apprehend it would be reasonable to deduct the cost of seed, at not less than 10 per cent, on the total value, which would make the net result of agricultural produce amount to £2,662,549. From the last census I learn that there are 51,572 persons following agricultural pursuits, and, taking the value of the product which their labour returns, it would give an average per head of £51 12s. 2d. From the same source I find that there are 13,926 persons following the occupation of mining and digging for minerals ; and the result of their work for the year, as may be seen on Table 1., Appendix, appears £1,485,491. A division of this sum equally among those engaged in mining will show an average of £106 13s. sd. per head; and I think I may fairly place as a set-off, one against the other, the value of plant and tools for carrying on mining operations, as against plant, implements, and horses necessary for agricultural purposes. It therefore will surely be admitted that the mining industry gives not only a better income to the individual employed in it than does the agricultural industry, but the result to the country generally is more profitable, as the soil is never being worn out and exhausted by the work of the miner. Before proceeding further allow me to speak generally in respect to the production of gold, silver, and other minerals throughout other parts of the world, with the view of showing by comparison the value of the mineral wealth of New Zealand in proportion to populations, as it is mainly on a population-basis that the development and production of mineral wealth of any country are regulated. So far as I have been enabled carefully to gather from all reliable statistics compiled since the year 1851 until the end of 1884, I make the quantity of gold produced within that period in the world—as will be seen on Table 2, appended— 200,164,6570z., equal to 8,340 tons, of the value of £802,995,251. In respect to silver I have only been able to get reliable data for the latter three years ending 1884—which may be seen in Table 3, appended. The quantity produced appears to be 266,013,9790z., or equal to 11,084 tons, of the value of £71,644,348. The total value of gold, silver, and other mineral products of the chief countries, including our own, in the world for the year 1884 —as shown by Table 5, attached —amounted to £237,378,452, while the aggregate populations of these several countries numbered 272,826,204. The value of mineral wealth could therefore give equal to 17s. sd. per head of the total population of the countries referred to. New Zealand bears a happy and satisfactory comparison with nineteen other

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great mineral-producing countries : the value of her mineral products will give equal to £2 17s. per head of her population according to last census. With regard to the other nineteen countries, in respect to gold-producing alone the United States of America stand first, being for the same period £19,437,499. The Australasian Colonies rank second, the quantity of gold being 4,486,5860z., representing a value of £17,257,738. Russia takes the third place, and shows a value of £14,490,452. The other countries exhibit comparatively a small amount in quantity and value to the three just mentioned. From Table 4, appended, it may be learned that the value of the mineral products of Great Britain for 1884 was £61,300,819, while for the same period her colonial possessions produced gold, silver, and. diamonds to the value of £15,795,847 ; thus making up a total of £77,096,666. The value of mineral products of the United States for the same year, as shown on Table 5, appended, appeared as £84,366,856, this latter sum being nearly equal to four times the value produced in the same period by any country in the world excepting Great Britain. These figures go to prove that the United States is by far the greatest of all mineral-producing countries in total quantity and value, and, in my opinion, the country where we may reasonably look for improvements, mechanical and scientific, in machinery, appliances, and methods for the economical and best treatment of our mineral ores, as well as for the most useful systems of carrying on operations under all phases and plans for mining. The comparative value of gold and silver produced in the Australian Colonies and New Zealand and the several States of America in 1885 will be seen from Table 6to be £5,730,813 and £17,375,206 respectively. These values give per head to the populations of the Australian Colonies and New Zealand £1 18s. 4d., and for the States of America £2 1.95. To take the colonies of Australasia alone, then New Zealand stands third on the list, Queensland ranking first, and showing equal to £3 10s. 6d. per head, Victoria £2 19s. 3d. per head, and New Zealand £1 13s. 7d. per head. Prom Table 7, appended, will be seen the qiiantity of gold entered for exportation on which duty has been paid in this colony up to the 31st March last, being 11,081,3450z., equal to 461f tons, and representing a value of £43,488,735. The quantity for the year ending the 31st March last was 232,0810z., of the value of £922,600, against the production of the previous year of £233,0680z., of the value of £931,628; showing a decrease in quantity for the last year of 9870z. and in value of £9,028. This decrease is explained by the large falling-off apparent in the produce of the goldfields of the North Island, which exhibit a decrease of 13,9830z., while the West Coast mines of the Middle Island increased their product last year by 4,6030z., and the mines of Otago 8,4910z. The improvement in the quantity produced on the West Coast may be attributable chiefly to the Reefton District, which is purely quartz-mining, and the reefs generally in that locality are giving good returns. Greymouth being the port where most of the Reefton gold is conveyed for shipment, I find that there were last year entered for export at Greymouth 6,7830z. more gold than for the previous year; while at the other West Coast ports a slight decrease in shipments is shown. For the same period there appears to have been a general increase in the product throughout the Otago mining districts, but the chief portion of the improvement is no doubt due to the more active development of quartz reefs in the Skipper's district. The figures I have just dealt with only show the quantity of gold entered at the Customs for export, and do not include any that may be used in the colony for manufacturing purposes; and at the present time there is no plan laid down for enabling me to procure information in respect to gold and silver used in that way. I proceed to state the total value of this colony's mineral productions exported up to the 31st December, 1886. The gold included is taken up to the 31st March last, as shown on Tables 1-8 and 9, appended.

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& Gold ... ... ... ... ... ... 43,488,735 Silver, to 31st December last ... .. ... 121,268 Copper „ ... ... ... 17,787 Chrome-ore „ ... ... ... 37,367 Antimony-ore „ ... ... ... 9,515 Manganese-ore „ ... ... ... 44,419 Haematite-ore „ ... ... ... 220 Mixed minerals „ ... ... ... 51,680 43,770,991 Coal exported „ ... ... £154,814 Coke exported „ ... ... 5,588 160,402 Kauri-gum „ ... ... ... 3,943,152 New Zealand coal consumed within the colony ... ... 1,875,963 £49,750,508 The value of last year's productions, as shown by the same tables, is as follows :— £ Gold ... ... ... ... ... ... 922,600 Silver ... ... ... ... ... ... 2,946 Copper-ore ... ... ... ... ... 390 Antimony-ore ... ... ... ... ... 1,784 Manganese-ore ... ... ... . • ... ... 1,316 Mixed minerals ... ... ... ... ... 1,846 930,882 Coal exported ... ... ... ... £52,133 Coke exported ... .... ... ... 715 52,848 Kauri-gum ... ... ... ... ... 257,653 New Zealand coal consumed within the colony ... ... 244,108 £1,485,491

These figures and facts, I trust, will serve to show that our mining industry is not a languishing one, nor has it suffered injuriously, compared with every other industry in the colony, during the many years of depression that have clouded all enterprise in this and other parts of the world. I think I may take upon myself to say that the present outlook of our mines has justified to a great extent the expenditure on works already constructed, besides such other works as may in the future become necessary to be undertaken for their further development. I have been unable to ascertain the total amount of capital invested in New Zealand mining ventures, for the reason that no returns are to hand showing the outlay by companies not engaged in mining for gold and silver. The returns relating to the latter class of work have been furnished by the Wardens of the several districts up to the 31st March last, and point to the fact that at that date the aggregate nominal capital of four hundred and forty-one companies engaged in gold- and silver-mining in the colony amounted to £6,830,348, of which £1,458,815 are paid up. Thirty-five companies are registered under the Limited. Liability Act, and amended Acts, 1865, and their total nominal capital is £612,150, of which £219,717 are paid up. Two companies are registered under the Joint-stock Companies Act, with a total nominal capital of £28,480, of which £21,980 are paid up. Eour hundred and four companies are registered under the Mining Companies Act, having a total nominal capital of £6,189,718, of which £1,217,118 are paid up. These companies are severally engaged in quartz or alluvial mining, and the number, I feel no doubt, will be greatly increased, together with the capital, at an early period, as the great mineral resources of the colony become more fully developed, and mining is carried on under more systematic and scientific plans, and to which before concluding I will take this occasion to again refer.

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It may be of interest if I state the nature and value of the principal plant and machinery employed in quartz and alluvial mining on our goldfields. At the end of March last there were 61 steam-engines and 143 water-wheels for the purposes of Avinding, pumping, and driving crushingmachinery, the latter running a total of 1,009 stampers, 614 berdans, buddies, and pans. There are also 7,968 lines of sluices, 6,096 lines of hydraulic piping and hose, 15 river-dredges, besides numerous other appliances, which in value amount together to £475,954. Belonging to counties, companies, and private individuals there are 3,948 water-races, having a total length of 6,071 miles; and these races have been estimated to have a conveying-capacity of 637,920 cubic feet of water per minute, and their total cost is £644,877. There are also 3,595 tail-races and channels for carrying water, the cost of which amounts to £141,206; waterreservoirs and dams, numbering 3,229, which cost £99,121; ground-sluices to the value of £13,954 : making the total cost of plant and machinery employed by the aid of private enterprise in developing gold- and silver-mining £1,375,112. To this last sum I must add the cost of water-races and channels that have been constructed, and are worked and managed under the direction of the Government. These amount to £370,306, thus making a grand total of £1,745,418 as the sum employed at this time in the cost of plant, machinery, water-races, and channels engaged in our mining operations for gold and silver only. The initiation of the great works I have just referred to here was due to a few brave and hardy miners, who have been the means from time to time of opening new sources of wealth by their discoveries; and, in my opinion, to the prospector and miner belong the credit of colonizing the most distant and out-of-the-way portions of New Zealand. I will now draw attention to the important question of revenue drawn by the State from the goldfields since the account of it has been kept separate from ordinary revenue, commencing in 1860. No less a sum than £2,159,552 —as shown by Table 10, appended —has been paid to the Consolidated Fund for gold duty and other goldfields revenue. It is true that this money for some years has been dispensed to the local bodies ; but had such a revenue not been forthcoming an equivalent in money would have had to have been provided out of the State revenues to have appeased the demands of the local bodies. I fear that there are some people who labour under the belief that the discovery of gold has been of no greater benefit to this colony than for a time being the means of bringing a large migratory population to it; but I ask those who may indulge in scepticism on the subject in what position would our country have been to-day, after nine years of continuous depression, had we no goldfields and other mines to fall back upon to supply the people with a share of their stores of natural wealth. The discovery of gold alone has been the cause of opening up and populating many parts of New Zealand which otherwise would at this date still have been unknown—a terra incognita. Look, for instance, at the west coast of the Middle Island, with its population numbering, say, thirty thousand, which have produced within a few years gold to the value of £18,789,630. How many people to-day would have known anything about the West Coast, its mineral riches and its forest riches, but for the discovery of gold ! Now that fair portion of this young country is growing stronger and more robust daily in all that tends in the direction of material progress—population, enterprise, and wealth. At the end of March last the number of men engaged in mining pursuits was comparatively small, being 11,782; but the amount of gold duty and other goldfields revenue paid for the year was £10,651 —equal to £3 9s. per head. To include the families belonging to the miners would fully make up fifty-seven thousand people. By the Customs revenue it is estimated that a consumption of dutiable goods equal to 16s. 6d. per head obtains, which would produce £47,025, and this sum, added to goldfields revenue, makes a total of £87,676 that this colony is receiving by way of taxation from the labours and enterprise of 11,782 miners —a trifle under £7 9s. per head. Surely I might almost claim as a " miner's right" that such an industrious and patient class of taxpayers will in the future be dealt with more liberally than in the past.

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It will be my purpose now to show the condition of the gold-mining industry throughout the colony during the past year. First, in respect to quartzmining, the returns from which have averaged lor the period under review somewhat equal to those for the year 1885-86, hut for want of accurate statements from some districts I am unable to give the exact number of tons crushed and the quantity of gold produced from quartz. Erom information furnished me from the Auckland District, I find that the quantity of quartz crushed was 39,875 tons, which yielded 45,9700z. of gold; while during the year previous there were crushed 43,620 tons, which produced 72,7930z. of gold. This result shows a decrease of 3,745 tons in the quantity crushed, and of 26,8230z. in the gold produced. This falling-off, I may explain, appertains mainly to the Thames District, for both in the Coromandel and Ohinemuri mining centres an increase in quantity crushed and yield of gold is apparent. In Coromandel, recently, I found the quartz-mines looking more promising than I had known them before. During the past year two English companies have been formed to work the properties formerly held by the Kapanga and Union Beach Companies, and each had commenced active mining-work on an extensive and systematic plan. The quartz-mines in the Ohinemuri District—which for some years past have been in rather a languishing state—are beginning to revive and are receiving attention. It is now known that many of them contain ores of a very rich although complex character, and which have been looked upon until recently as of little value: gold having been the only metal searched for, all other metals were rudely passed by as of no account. Recently, however, sixteen tons of ore were taken from one of the Waihi mines and forwarded to London, where the stone was sold in its raw condition for £43 per ton. It is also worthy of notice that another mine in this district, belonging to the Silverton Company, has produced under the ordinary battery-process sufficient gold to enable the company to open up the mine and pay a dividend before finding it necessary to call up any capital; and all the debris and tailings from the crushed stone have been stacked in readiness for treatment under some mode more scientific and useful than the mode hitherto adopted for extracting the mineral wealth contained therein. The Adeline Company, at Karangahake, owns a rich quartz-mine. The company was formed during the latter part of 1885. Its paid-up capital is £83, and since commencing work dividends to the extent of £2,500 have been paid to shareholders. In the same line of mountain-country 120 tons of ore were lately taken from the Tui Creek Reef, and forwarded to England, and the stone sold in its natural condition at prices ranging from £11 10s. to £12 10s. per ton. With miles overlapping miles of mountains containing reefs and lodes of such values as I have just instanced, no one should be found any longer to underrate the vital importance that the mining industry must have on the future progress and greatness of New Zealand. Some of the extensive lodes that are found in the Ohinemuri and Te Aroha Districts, run 16ft. in thickness, and are rich in mixed mineral wealth, containing a combination of gold, silver, copper, zinc, lead, and mercury. When the time comes for these enormous lodes to be opened out and worked by the aid of sufficient capital, with proper machinery, and the ores treated by a practically scientific process, the satisfactory results will astonish not only the unbelievers in mining pursuits, but even the friends. In the Middle Island the premier reefing district at present is Reefton, and the returns from it show that 23,930 tons of quartz have been crushed, giving a result of 21,1430z. of gold ; while for the previous year the product of gold from quartz was 14,5910z.: showing an increase in favour of last year of 6,5520z. The general appearance of mining in Reefton District is most satisfactory, and indicates a more prosperous condition than has been the case for several years. New and valuable discoveries have been made in the vicinity of Devil's Creek, and they are likely to prove of a permanent character, and, in the near future, promise to largely augment our gold-product. During the past year dividends have been paid by registered companies to the extent of £33,450, while the calls made upon shareholders for the same period amount to £21,596, thus giving an excess of dividends over calls of £11,854. The principal companies that contributed to this

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result were the Keep It Dark, Fiery Cross, Welcome, Just in Time, Venus Extended, and tlie Inglewood. Putting together the number of registered companies in existence in the Iteefton and Lyell Districts at the end of last year, which have complied with the provisions of the Mining Company's Act by publishing an annual statement of their accounts, it will be seen from the detailed, information given in the Inspecting Engineer's report that the total value of the dividends paid in the Reefton District in excess of calls was £47,291, and in the Lyell District £14,526, or, together, £61,817. During the time the several companies just referred to have had existence the total calls paid amount to £191,756, while the dividends paid to shareholders appear £253,573. In the Province of Otago, the quartz-mines at Skipper's, Arrow, and at the head of Lake Wakatipu continue to give good returns. Near to Maori Point, on the Shotover River, a new reef has lately been discovered, which, judging by present prospects, is likely to prove a most valuable find. This reef has been taken up, and is being worked by a Victorian company which is now erecting a crushingbattery. The returns from the Phoenix Company, at Skipper's, show that during last year 7,000 tons of stone have been crushed, which yielded 5,2780z. of gold, a considerable increase on the yield for the previous year. The electricalmachinery plant of this company, referred to by me last year, has been completely put together and worked, and lam glad to say has proved a success. A full description of this plant is given in the Inspecting Engineer's report. This new method of transmitting electrical power to work mining machinery has not yet, so far as I can learn, been adopted in any other country; but now that the Phoenix Company has practically demonstrated its easy application to mining in mountainous parts, it will prove a most valuable discovery for New Zealand, where rivers, creeks, and mountain torrents abound, which can be utilized to the best advantage, and with economy, in generating electricity as a great power for transmission to machinery, at whatever level it may be placed. Between the Clutha River and Campbell's, on the Old Man Range, a reef known as White's has been giving good returns. Prom 600 tons of stone crushed 5200z. of gold have been obtained during last year. I have on a former occasion stated as my opinion that it is from the quartzmining branch of the industry we must expect chiefly our permanent annual product of gold and silver. It is therefore gratifying to look at the satisfactory results of quartz-mining throughout the colony at the present time ; and I think that the figures and results I have submitted will be held to prove that the operations of mining can be carried on commercially, and on as sound a basis, as any other business that helps to build up an extensive commerce and make a country great. It is true that many mining ventures do not respond to the great expectations of those who speculative purposes—for forming companies to barter in shares —and not for the may have been led to embark their money in them; but this is too often due to the obnoxious system that obtains to a certain extent in this country, as well as in other gold-, silver-, and diamond-mining countries, of taking up ground for working of the mine in a bond fide manner. And, again, in many instances, when payable lodes have been found, and the metal is readily and easily procured, the profits are paid away to shareholders and promoters without any thought of the necessity of a reserve fund being formed, to be in readiness to provide for further prospecting or opening up other levels to work the lode, or the ground belonging to the company. The sole aim has too frequently been to make the dividends as large as possible while the run of gold lasted, for the purpose of creating a traffic in the shares, without the least regard to the mining property immediately interested, or to the great mining industry of the colony, and in the end, in too many cases, appealing to the State for help to continue work which a reckless prodigality had made it impossible to do. I desire to say that I have no sympathy with this order of things. I wish to see the mining industry looked upon as a thoroughly sound one, and viewed with respect, as I also look upon the agricultural and pastoral and all manufacturing industries. So far as the interests of any country are concerned, they are its off-

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spring, as one family, and should live and work in harmony to make their parental foundation honoured and great. I cannot turn my back on the subject of quartz-mining without pointing out the great difficulty this valuable industry is labouring under in not having in use a proper and economical method of treating and reducing the complex and refractory ores with which portions of New Zealand abound; and for want of which by far the largest percentage of valuable metals contained in many of the ores, under our present system of treatment, is going to waste; besides which I know of numerous lodes that are unworkable, because valueless under our usual appliances, but possessed of great metalline value, as proved by analysis, if we had the plan to extract the metals. In Ereiberg in Saxony, Kremnitz in Hungary, and in San Erancisco and Denver in the United States, there are works that can satisfactorily deal with refractory ores such as I have just referred to; and I feel no hesitation in recommending that a sum of money should be devoted by the State in such a way as would enable this country to have the best and most reliable information on the subject, that it might be imparted to those engaged in quartz-mining: but generally, in other respects, I wish to see the mining industry placed on the same commercial basis as all other industries in the colony, that those engaged in it may become —as I believe in heart they are —thoroughly self-reliant, and no longer continue to look to the State for subsidy or aid; for, in my opinion, it is under the banner of true self-reliance that the mining industry of New Zealand will be placed upon a solid foundation, and will command that respect which its national importance deserves. I now direct attention to some of the principal alluvial gold-producing districts of the colony, and, strange to say, the whole of those known alluvial fields are in the Middle Island. Perhaps the richest and chief field of this nature is Kumara, on the West Coast, where the operations of mining are wholly carried on under the hydraulic sluicing system ; and this plan of working could not have been practised had it not been for the large water-supply works constructed by the colony, which have already enabled an enormous area of ground to be sluiced and washed, and there remains still a much greater area to be dealt with, the whole being composed of a large depth of drift-gravel, impregnated more or less with gold throughout. By the water-supply referred to there were obtained during last year by sluicing in Kumara District 13,6400z. of gold, and no cries of inactivity and depression are to be heard there, but it promises most surely to employ profitably to themselves a large population for many years to come. The largest and most important hydraulic sluicing company in the colony is the Humphrey's Gully, a few miles inland from Hokitika. This undertaking has been formed chiefly by the aid of English capital, and it controls a large area of ground which has been proved to contain gold in payable quantity very evenly throughout; but, on the other hand, it has been found that the company's watersupply is largely insufficient to carry on the necessary sluicing operations advantageously, and I have been informed an effort is being made to increase the capital of the company with the object of tapping the Arahura River, and thereby obtaining an unlimited supply for the future welfare of the company. The other districts on the West Coast where alluvial mining is carried on by hydraulic sluicing and otherwise are chiefly Totara, Grey Valley, Addison's Elat, Charleston, and Riniu. Each of these localities continues to support a fairly large and prosperous mining population. In the Totara District an important company, formed chiefly with English capital, has been prospecting and working at alluvial mining far below the surface by the aid of powerful pumping- and wind-ing-machinery. The main auriferous layer of wash-drift operated on last year was 200 ft. below sea-level; but about the beginning of the present year the influx of water became so great and powerful that the pumping-machinery was incapable of regulating the water so as to keep the mine dry, and therefore deeplevel operations had to be suspended, which I regard as a misfortune, as I look forward at no distant date to considerable alluvial wealth in gold-mining being discovered at great depths in several portions of this colony, and under the same conditions that it has been found in many parts of Australia.

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Throughout the whole of the Otago goldflelds—Tuapelca, Naseby, St. Bathan's, Ophir, Clarke's, Tinker's, Bannockburn, Criffel, Shotover, Skipper's, Nokomai, Nevis, Waikaia, Round Hill, and Orepuke—the chief alluvial goldproducing centres have almost universally adopted the hydraulic sluicing system, and many of these localities have in a great measure to depend on the rainfall for a water-supply, having made little or no provision for the storage of water and its distribution by means of races. Notwithstanding that last year was thought a very dry one the yield of gold showed an increase. The high elevation of the country at Clarke's, Criffel, and the Nevis precludes mining being carried on for a great portion of the year; at the two former places mining can only be carried on for about half of the year. The yield of gold, however, from Criffel for last season was up to 2,0000z., and this quantity obtained by washing from small ponds after a fall of rain. When the two excellent water-races now in course of construction have been completed and commence to supply water, a marked increase in the returns from this field may safely be reckoned upon. On many of the goldfields of Otago the miners have better advantages than their brethren in other parts of the colony, inasmuch as many of the Otago miners have been able to secure small freeholds of land, and therefore, when it is not convenient to carry on mining work, they occupy their time in raising produce from their land and improving their little properties. I would like to see every miner encouraged to acquire a small freehold of his own in the locality where he was following his regular avocation. I now desire to review in the aggregate the number and area of mining leases, licensed holdings, special claims, and agricultural leases granted within mining districts. Of the three former I find there are 775, occupying an extent of 6,050 acres, and which yield a rental to the State of £7,914 ; of the latter there are 414 leases, comprising an area of 26,988 acres, giving an annual rental of £2,942. I have gathered this information from returns furnished by the several Wardens; but lands held under mineral leases, through having been heretofore issued by the different Land Boards, are not included; but it is my intention to endeavour to get full and complete returns of all lands held as mineral leases acquired through the Land Boards as well as all other mining leases, holdings, and claims acquired through the Mining Department and Wardens, that I may be able to show the actual quantity of land occupied for mining purposes, and the annual rental by way of revenue coming from it. It may prove interesting to refer to mines other than those which produce gold and silver. In the neighbourhood of Queen Charlotte Sound a valuable antimony lode is being scientifically and systematically worked {by a company composed chiefly of Wellington shareholders. This company had been at work for several years prospecting and opening out their mine; and I am glad to say those interested are well satisfied with the size of the lode and the quality of the ore discovered, and there can be now no doubt, if this undertaking is carefully managed, and worked on an extensive scale, with ■ fair economy, the venture will prove a payable one, and beneficial to the colony. Crushing- and concentrating-machinery have recently been erected by the company in connection with large smelting-works, so as to be in a position to turn out the metal ready for shipment to the English market. Fifty workmen are at present employed, four of whom have been imported as experts to conduct Ihe smelting operations. Up to the present time this company has spent, on mine, plant, machinery, and buildings, about £25,000. Full details of the works may be seen on reference to the Inspecting Engineer's report. It is much to be regretted that the company formed for the purpose of working the copper-lodes lying in ranges adjoining the Boiling River and its tributaries, in the Nelson District, has been unfortunate and unsuccessful in its operations. After erecting excellent smelting- and roasting-furnaces, and stonebreaking machines for crushing, it was found, under the company's system of working, that the ore did not yield according to expectations, and that the mine would not pay to work copper at its present low price in the English market. I hope, however, at some future time, with an improved value in copper, that a new and more hopeful start will be made at this mine.

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It is now my purpose to deal with a branch of mining which I regard with the utmost satisfaction in respect to the well-being and best interests of the colony. I refer to the coal industry. It is gratifying to me to be able to point to a steady increase in the annual output: but the supply from our mines is not equal even to the consumption within the colony. Since returns from coal-mines have been furnished, the approximate total output from all coal-mines in New Zealand appears 4,052,614 tons, while the output for last year was 584,853 tons, as against 511,063 tons for the year preceding it, thus showing an increase in the output for last year of 23,290 tons. The quantity of coal imported last year was 119,573 tons, against the previous year of 130,202 tons ; showing a decrease in the imports of 10,329 tons. Adding together the output of coal from the mines in the colony and the quantity imported during the year ending 31st December, 1886, gives a total of 654,226 tons, against a similar aggregate for the previous year of 641,265 tons; which shows the increase of our coal-trade for last year to exceed by 12,961 tons the trade of the year previous. According to the returns furnished by the Customs Department, I find the export of coal for last year amounts to 46,540 tons; and of this quantity 43,678 tons were used in coaling the direct steamers trading with England, and 2,862 tons were sent away for foreign use. The actual consumption, therefore, within the colony, including that used by direct steamers, last year was 651,364 tons, or 117,011 tons more than the total output of our mines. The consumption of New Zealand coal in the year 1885 was 638,894 tons, which gives evidence that the use of our own product within the colony is steadily increasing; and I regard these figures with satisfaction, as they are excellent proof that manufacturing power is extending, and consequently more fuel is required every year. It must not, however, be supposed that when the time comes —and that time is not far distant —that our mines are capable of supplying the full quantity necessary for the colony's wants, importation from other countries will cease; for vessels trading to New South Wales with New Zealand produce will generally carry back to us a certain quantity of coal as ballast, and ships trading from Britain frequently have as cargo parcels of Welsh and Scotch coal; but, nevertheless, looking at the very superior quality of our Westport and Greymouth coals, I do not think that New Zealand has anything to fear from even active competition in the coal-markets of the world with any other coal-producing country. Our great difficulty at present—and I regard it as only temporary —in competing with foreign producers is that our best bituminous coal can only be exported from bar-harbours, such as Westporfc and Greymouth ; but the improvements now rapidly going on at each of these important ports, and the favourable results already shown by the works done by the two Harbour Boards, lead me to believe that within twelve or eighteen months excellent facilities and safe accommodation will be afforded at both ports for steam-colliers and other vessels capable of carrying on one bottom 1,500 to 2,000 tons of coal for export. It will then be recognized of what enormous value is the west coast of the Middle Island to the colony as a whole; for the large area over which the bituminous-coal measures in that locality extend, and the almost phenomenal thickness of the seams, point to it as the region from whence our future supply for manufacturing, commercial, and domestic purposes must come, as well as the supply of a great export trade for foreign use which most surely will be engendered by the exceptional goodness of the product. The increase in the output of bituminous coals last year may be seen by reference to Table 13, appended, as 28,163 tons, and of pitch-coals as 18,993 tons; while the output of brown coal for the same period exhibits a falling-off of 18,724 tons, and that of lignite 4,541 tons. The principal increase in the output of bituminous coal occurs in the Westport District, the Banbiiry Mine showing 28,139 tons, and the Koranui Mine 13,631 tons. In the Greymouth District the Coal-pit Heath Mine shows an increase of 4,418 tons. Of other inferior classes of coal in different parts of the colony the mines that show an increase are the Shag Point 6,816 tons, and the Kaitangata 6,039 tons, in Otago; the Nightcaps, Southland, 4,900 tons; St. Helen's, Canterbury, 2,811 tons; and the Whauwhau, Auckland, 2,735 tons.

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Those mines showing a decrease on the output for last year are the Brunner, Greymouth, 16,836 tons; Taupiri, Auckland, 6,733 tons; Kawakawa, Bay of Islands, 6,397 tons; Homebush, Canterbury, 5,268 tons; Walton Park, Otago, 2,865 tons; and Hartley, Canterbury, 2,529 tons. I may explain the large apparent decrease in the output of one of our chief mines—the Brunner —is partially due to the inability of the owners to procure suitable steam-vessels to carry the coal away; and this state of tilings has interfered to such an extent with the output that one of the proprietors has recently gone to England with the object of making arrangements to get suitable steam-colliers for the purposes of his coaltrade. The decreased output from Kawakawa Mine is wholly due to the inferior character of the seams, which are evidently wedging out so thin that, unless coal can be found in other portions of the company's land, there is no prospect of ever getting anything like an output again from this mine, unless recourse be had to working back on the pillars for the time they may last. Having in the early part of this year visited the principal coal-mines north of Auckland, and examined the character both of the seams and the coal, I found the former to be greatly distorted, with numerous rolls, and with faults frequently occurring, which add to the risk and cost of working; and from what I saw I could not help coming to the conclusion that there was little chance of good steam coal being found in that portion of the colony ; that, as regards quality and cost of winning, the product would never compare with the favourable condition of the coal-mines of the west coast of the Middle Island. The number of coal-mines in operation in the colony last year was 110, as against 95 for the preceding year, showing an increase of 15 new mines opened during the year. The number of men employed in connection with coal-mining last year was 1,605, as against 1,483 engaged in such work during the previous year ; thus finding employment for an additional 122 men. The average output of coal per man was 333 tons, or 12 tons per man less than for the preceding year. The number of men engaged in connection with the working of bituminous mines was 926, and their output of this class of coal was 285,357 tons ; which gives an average per man of 308 tons. In connection with the winning of pitch-coal there were 240 men employed, and their output was 83,179 tons, or equal to 347 tons per man. There were 405 men engaged in winning brown coal, and their output was 154,305 tons, equal to 381 tons per man; while 34 men. were employed in digging lignite, and their output was 11,512 tons, equal to 3;i9 tons per man. The,operation of winning the latter class of coal can hardly be called mining, as the lignite in most places is broken down in a face much in the same manner as working a quarry, and the lignite is chiefly used for local consumption—for farm and domestic purposes in the districts Avhere the pits are situated. The low average per man in. the output of bituminous coal is due to the large quantity of deadwork that generally has to be done in opening out the mine, as in the case of the Wallsend Mine at Greymouth, which employed 136 men during last year in sinking a shaft over 630 ft. deep to get at the seam, and the total quantity of coal won was only 1,506 tons, which is sufficient to account for the low average output per man of this class of coal. It is needless for me to say here how all-important the coal-mining industry is to New Zealand. Year by year the output from our bituminous mines will be largely increased ; and, although there will in all probability be a large falling-off in the product of the northern mines, yet those great coal-districts on the west coast of the Middle Island will most certainly show a considerable increased output and export annually. The Wallsend Mine alone has two immense shafts, each 640 ft. in depth, and it is being opened up sufficiently to employ a large number of miners. It has the most modern and powerful winding- and pumping-machinery in the colony erected, and with such perfect appliances now in full operation this company can raise coal equal to 1,000 tons per day. I cannot close my remarks on the many branches of mining without referring to one which is unique in this colony. I allude to the important and lucrative industry of digging for kauri-gum ; and, although to some it may appear paradoxical to call this product a mineral, yet to me it seems as much so as coal:

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each product bears about equal relationship to the vegetable kingdom. The digging for gum may be compared to surface-mining for gold, with the distinction that the nuggets of the former are found of a much larger size and more generally dispersed over particular districts peculiar to the North Island. The gum-digging industry gives constant employment to a large number of the European as well as the Native population. Since the beginning of the year 1853 there has been dug and taken from land where gigantic kauri-forests originally grew 104,400 tons of gum; but perhaps centuries have passed since the forests Avere destroyed. The value of the product taken from the gum-fields up to the end of last year amounts to £8,943,152. The exact quantity of gum procured last year cannot easily be ascertained ; but the quantity exported, I think, may be taken as a near approximate: this appears as 4,921 tons, representing a value of £257,653. According to last census I find the number of persons engaged in the occupation of gum-digging was 1,283; therefore, taking the value of the product obtained, the average earning for the year of the gum-digger would appear to have been £200165. sd. per individual. I trust that this report will not prove wearisome if I point out the conclusion I have come to as to the value of the mining industry in respect to the number of persons engaged in its pursuit. In the first place, the value of any industry to a country is the value of its product in proportion to the number of persons employed and the capital invested; but with regard to mining labour is generally the all-important factor, and frequently gold-mining is carried on successfully by individual miners, alone or in company, without any other capital than their labour to commence operations with; it is therefore on that basis I will first show the average earnings separately of those engaged in each branch of mining, and then collectively. The average number of persons engaged in gold- and silver-mining at the end of March last was 11,782, and at the end of March of the previous year 11,178, which gives an average for last year of 11,4-80. The value of gold and silver produced for that period was £925,546, or equal to an average of £80 12s. 7d. per man. The number of persons engaged in coal-mining was 1,605, and the total output of coal was 534,353 tons, representing a value of £267,176, with the value of coke exported £715 ; which gives an average value per miner of £166 18s. 2d. As to the number of persons engaged in mining for other minerals than those just enumerated I have no returns to show; but I think I shall be justified in estimating them at fifty; and, as the value of such minerals obtained last year amounted to £5,336, this sum would give an average of £106 13s. 2d. per individual. The aggregate number of persons engaged in all classes of mining, including gum-diggers, during last year appears to have been 14,468, which is 562 in excess of those shown by the last census-papers ; and the total value of all mineral products obtained, including kauri-gum, appears to be £1,485,491, or equal to an average value per man engaged in mining for the year of £102 13s. 6d. This is after all expenses of living, wages, and working expenses have been provided for. It will surely now be recognized that the mining industry, from the results shown, will compare most favourably with any other calling or occupation in the colony; and no individual able and willing to work need ever be in want of employment in New Zealand if ready to turn his attention to mining. I propose now to draw attention to the important works which have from time to time been undertaken by the colony in our several mining districts in the direction of opening up the country and developing its mineral resources, and at the same time promoting the settlement of people upon the soil. The foremost of such works are roads and tracks. Without such having been formed and made, large areas of country rich in mineral wealth could never have been prospected and inhabited. Those days when gold was easily obtained from the beds of creeks and from shallow ground have gone past; but I believe they will return again as the vast extent of unexplored country in Nelson and Westland Districts becomes better known; meanwhile, however, in order to make the auriferous drifts pay, the workings require to be conducted on an extensive and systematic scale. Large

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and expensive hydraulic plants have to be procured, extensive and difficult waterraces have to be constructed, and long lines of sluice-boxes and tail-races have to be formed, and other modern appliances have to be brought into use to properly work the ground. And, again, to operate on the auriferous and argentiferous quartz lodes, which may be looked upon as the permanent gold- and silver-mines of the colony, would be impossible without having proper machinery, the transit of which to the mines necessitates the construction of roads and tracks to even a far greater extent than in districts where only alluvial mining is carried on, as the machinery necessary for the latter class of mining is comparatively light and trifling with that used for treating and dealing with quartz lodes. I may here point out that in order to give anything like facilities to carry on quartz-mining properly requires almost a network of roads and tracks, as quartz lodes are generally to be found in mountainous and broken country, abounding in narrow steep gorges and deep ravines. Another important advantage of roads through mining districts is, that they afford opportunity for the intending settler to take up and cultivate land in the country far back from settled communities, and thus form an inducement to others to become neighbours ; for the mining population in the locality is the settler's best guarantee that a good and ready market for his produce will always be available. It is therefore particularly desirable that the State should continue to give assistance towards the making of roads and tracks, as they will tend to place the mining districts on a more equal footing with the older and more agricultural settled districts in the colony. The system that has obtained hitherto in respect to such works in mining districts has been to subsidize the local bodies, formerly to the extent of £2 for £1, but latterly £1 for £1; and, in cases where any special road was likely to open up a large extent of auriferous country or land fitted for settlement, then the entire cost of construction has been borne by the colony. The total cost of roads and tracks undertaken and constructed in gold-mining districts by the aid of subsidies from votes under the control of the Mines Department amounts to £61,419, of which subsidies include £40,416. The estimated cost of similar works under construction by local bodies amounts to £30,768, of which sum subsidies to the extent of £7,667 have been paid, and there remain liabilities on account of further subsidies authorised to the end of March last of £10,455. The cost of roads and tracks undertaken and constructed entirely by the Mines Department is £21,482, and the amount authorised for similar works now in course of construction, amounts to £53,420, of which sum £35,929 have been paid, and the liabilities remaining at the end of March last were £17,791. In addition to the roads just referred to, there have been constructed outside goldmining districts, to assist in opening up mines other than gold and silver, other roads, at a cost of £5,279; of this sum, subsidies have been given amounting to £4,326. There are, besides, roads in course of construction estimated to cost £900 when completed, and towards which subsidies have been paid to the extent of £389, and there remains as liabilities on. the same account £111. The total cost of roads and tracks to which subsidies have been given to the local bodies, together with those constructed wholly by the Mines Department, amounts to £173,269, of which sum £110,209 have been paid by way of subsidy, and a liability of £28,357 on the same account existed at the end of March last. I now come to those necessary works in the interests of gold- and silvermining known as water-races. Without such works the large extent of auriferous drift terraces of great depth that exist in many parts of the Middle Island could not be properly and profitably operated on, as hydraulic sluicing is the only method by which such deposits can be systematically and advantageously dealt with, nor could the abundant water-supply of many of our numerous rivers and creeks be utilised as a cheap and convenient motive power for a large portion of the machinery employed in connection with the mining industry without wellformed water-races. To works of this character the State has given considerable help hitherto, where the undertaking was of too great magnitude for private or individual enterprise, and where the extent of auriferous ground promised remunerative employment to a large population, sufficient to warrant the expen-

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diture on cost. Some water-races, however, have not borne out the satisfactory expectations formed of them when their construction was first initiated; but it must be' remembered that, in inaugurating this plan of assistance to the goldfields, it was, in this colony, an experiment, and, although no great revenue has been received direct by the State, yet, by the large communities these works have been instrumental in keeping together in regular and constant employment, a large revenue has been gathered in directly through the Customs for gold produced and goods consumed by the miners and other inhabitants of the mining districts. The total cost of water-races constructed by the colony, including all subsidies paid towards them, amounts to £508,906. Those that have been wholly undertaken by the colony are the Thames, Mount Ida, Waimea, Kumara, Nelson Creek, Argyle—Charleston —and Mikonui: the latter has only been partly made, as I deemed it prudent to stop any further expenditure on this race. The Thames race, when completed, was handed over to the Thames County, which body receives, after payment of all charges for maintenance, a large revenue from it. The Mount Ida has been handed over to the management of a Trust; but hitherto the State has contributed about £500 annually towards its maintenance. I hope in the future that the Trust will have sufficient revenue of its own to provide for its requirements. The water-races still managed under the control of the Mines Department are the Waimea-Kumara, which last year gave receipts beyond expenditure of £4,630; besides, the duty paid on gold obtained by miners using its water was £1,671, which shows a return of interest on the total cost of construction of the combined works of about 3f per cent. The Nelson Creek and the Argyle gave, last year, small direct returns of revenue above expenditure for maintenance. Taking the whole of the water-races now maintained or contributed to by the State, including the Mount Ida, and their cost of construction and extension up to the end of March last amounts to £370,206. The surplus revenue over expenditure amounts to £4,459, and the duty paid on gold produced by means of these works amounts to £2,189, which gives a return equal to 13s. 4d. per cent, on the total cost of construction. Since votes by Parliament for w*orks of this character have been under the control of the Mines Department £42,857 have been authorised towards their construction, and of which £37,241 have been expended, leaving as a liability on account of subsidies at the end of March last £3,466. During the past year I authorised no money for expenditure on works of this character, being desirous of entirely stopping State aid to such as quickly as possible. Drainage- and sludge-channels, although subsidiary, are necessary works to water-races, that have been subsidised by the State, since the votes have been under the control of the Mines Department, to the extent of £12,756; the cost of such works being £19,852, and there are liabilities outstanding on account of authorised subsidies amounting to £672. The colony has from time to time given assistance, by way of subsidies, towards prospecting for new goldfields, and I may say that a similar custom obtains in the other gold-producing countries of Australasia; but it is difficult to determine the best method on a fair basis to encourage miners to prospect, for the searching for auriferous drift-wash and mineral-lodes are undertakings in which miners have to undergo severe hardship from the very rugged nature of the country that generally has to be traversed during the process of search. In many instances the land is heavily timbered and thickly interspersed with a dense undergrowth of scrub, and considering that prospectors have to carry everything in the shape of tools, food, &c, on their backs, it is hardly to be wondered at that new discoveries are not of more frequent occurrence. During last year a promising quartz-reef was found in the Waikoromika District, near Coromandel, and very rich specimens have been taken from the reef; but, as yet, there has not been sufficient prospecting done to determine its extent. Since votes for this purpose have been under the control of the Mines Department the total outlay in prospecting has been £31,598, on account of which £9,956 have been paid in subsidies, and a liability still remains for the same of £4,618. During last year the prospecting done is estimated to have cost £5,671,

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and the subsidies paid, partly on account of it and partly on account of the preceding year's liabilities, amount to £4,409. In respect to some of the appliances for assisting the work of prospecting, I have found that the expensive and heavy diamond-drills imported a few years ago for this purpose proved too weighty and cumbersome to move about, and required an expert to work them; and the general character of rock in the vicinity of quartz-lodes, having frequently soft and hard veins alternating throughout, these drills are of very little service unless brought into contact with rock of an uniform hardness. Recently the department obtained from America three light portable diamond-drills, each of which will readily take to pieces, and the heaviest portion will not weigh more than 501b. This admits of their being easily carried from one place to another, and as they can be set into position within two hours ready for working, driven by hand, horse-, or water-power, they have been proved to be most useful and excellent machines, and will bore to a depth of 500 ft. The cost of drills imported before I last assumed office was £4,023, of which the coloDy contributed £2,281. The three drills imported last year cost £423. 1 now briefly summarise the total cost of all works undertaken wholly, or assisted with subsidies, by the Mines Department up to the end of March last. During the five years that the Mines parliamentary votes have been under the control of my office the total outlay on works amounts to £271,599, of which there have been paid in subsidies and other expenses £172,544, and there remain liabilities up to the end of March last for which the colony is responsible amounting to £37,114. The cost of works undertaken for the three years previous to my assumption of my present office was £167,673, of which £89,255 were paid by the State, and the liabilities that remained, together with subsidies paid to local bodies up to the end of that period, amounted to £38,285. During the last two years the cost of works undertaken was £103,926, of which £83,289 were paid by the State, and the liabilities remaining on account of subsidies and on works wholly provided for by the department at the end of March last amount to £37,114. During last year the cost of works undertaken was £29,352, and the total subsidies paid to local bodies, together with the expenditure made by the department, amounted to £41,500. It will therefore be seen that a considerable reduction was made in the sum authorised to be spent last year. Full details of the total cost of these works and the expenditure thereon may be gathered from the several tables attached to the report of the Inspecting Engineer. With regard to the important and useful work being carried on in connection with the schools of mines at the many mining centres throughout the colony where they have been established. It seems to me that one of the first and surest steps towards developing the mineral resources of New Zealand is to give every opportunity and encouragement to our mining population to become thoroughly well acquainted with the various ores that exist in different parts of the colony, in order that miners, who cannot detect the nature of any ore by sight, may be able to test it by analysis, and ascertain its value. It is only by such means that we may look forward to our mineral ]odes being properly prospected and intelligently worked, and the combination of metals in refractory ores being more easily discovered and understood, for hitherto this last description of ore has considerably puzzled the most scientific and practical men among the mining communities. Schools of mines have been established in all of the chief mining centres, and they may fairly be termed excellent schools for technical education. It is really astonishing to learn of the good work done in the direction of teaching not only the adult miner, but the youthful student as well; and so eager are all classes that attend these schools to acquire knowledge and information on subjects connected with minerals and their analysis that they have formed themselves into local bodies in the several centres, and have subscribed handsomely towards funds for the erection of buildings, and had the same fitted up with convenient laboratories with assaying-fur-naces capable of testing the component parts of any ore or other mineral that may be met with. Much of the success of these schools is due to the energetic and enthusiastic manner in which Professor Black, of the Otago University, first inaugurated them, and then carried on the courses of lectures with unflagging zeal

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throughout the whole mining districts of the colony. Last year Professor Black confined his teachings to the Middle Island, with his assistants; and Professor Brown, of the University College, Auckland, in conjunction with Mr. Montgomery, of the Thames School of Mines, undertook the supervision and instruction of schools in the North Island. The great interest with which Professor Brown has taken up this work, and the anxiety he has shown to try and improve the knowledge of the mining communities among which he travels, may be gleaned from the interesting and instructive lecture he recently delivered in Auckland on the subject of the extraction of gold and silver from the ores in the Thames District. Through the good offices of the late Sir Julius yon Haast I was enabled to obtain last year from Germany 15 sets of mineral specimens complete, and 12 of these have been distributed among the principal schools of mines. One set will be kept in Wellington for reference and comparison, and two remain to be handed over to other schools that are still without. These specimen sets have been found to be most useful to the miners and students generally attending the schools, as they have been so well and carefully selected and marked that each specimen can with ease be compared with any other natural specimen found in the country, and its nature immediately detected. Up to the present time there have been established 24 schools of mines throughout the colony; five of these are in the North Island and the remainder in the Middle Island, full details of which, with an account of their state of efficiency, will be found in the several reports furnished by Professor Black and his assistants. The total cost of imparting instruction and information, and subsidies given to the schools up to the end of March last, was £4,193, and the expenditure for same during last year was £2,924. I feel great satisfaction in reporting such good results from the formation of these schools, and the great interest shown by the mining communities in them; and I consider that the colony is indebted to Professor Black and Professor Brown and their assistants for the energy and enthusiasm displayed in conducting the necessary instruction in the manner they have hitherto done. The course of instruction given has already proved itself of incalculable benefit to the miners and other students, and, I believe, ultimately will be the means of establishing a better system of working the mineral lodes, and in saving a very large percentage of metals that otherwise would be allowed to go to waste. In my Mines Statement last year I referred to what I considered to be a great want in the form of a Handbook of New Zealand Mines, showing the various gold, silver, coal, and other mineral workings, and the several methods adopted in mining and the treatment of ores ; also showing the operations of the different mining companies formed in the colony. I am glad to say that I have been enabled to supply the want; but the difficulty 1 found in obtaining reliable information on all the subjects I desired has prevented me from issuing the book in as complete a form as I wished to do. It will be found, however, to contain much instructive and useful knowledge on the early history of mining in New Zealand in as concise a form as might have been expected under the circumstances which surrounded its publication, and, as it has been the first attempt of the issue of such a volume, I hope at some future period a publication of a similar character will be issued by the Mines Department, and in which the information now deficient will be fully supplied. It will be admitted that such a book not only affords valuable information to those residing within the colony, but it also gives the means to those residing in other countries of learning the history, character, and modes of mining carried on in our country. There is nothing that tends to enlarge our knowledge on all subjects more than the interchange of ideas, and were it not for this, our important industry of mining might go on from year to year in the same old groove, without making the slightest advance in improvements and progress. I need hardly point out what ample scope there is with us for seeking improvements in our present systems of mining, and in the treatment of our various refractory and other ores, whereby the unlimited store of metalliferous rocks that are now to a large extent, for want of knowledge of the proper mode of treatment, looked upon as worthless could be made to yield handsome profits to the miners. My aim, has always been to see the mining industry of

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this colony placed upon a solid basis, and our mines worked upon sound commercial principles, for I feel that the future welfare of the colony depends in a great measure on the development of its immense mineral resources, as we have large tracts of land unsuitable for any other occupation than mining, and which are known to contain considerable wealth in minerals. It was with the object of distributing reliable and practical information far and wide that I first attempted the publication of the Handbook. With regard to further assistance by the State towards mining, I am of opinion that every industry in this colony should, by the aid of good government, be placed in such a position as to be able to progress on its own basis, and I feel that the sooner this principle is adopted in respect to mining and all other industries the more sound and permanent each will become. It is true that the mining industry has heretofore been liberally fostered ; but for this I am not responsible. My predecessors established a desultory system of assistance in such varied forms to works of many descriptions that the custom, I found, could not be suddenly stopped During my term of office I have been endeavouring by degrees to discontinue that kind of assistance, excepting in very special cases, and in the construction of roads and tracks to open up the country. It is in the latter direction.that aid by the State should be freely given, in order to place the mining industry on a somewhat equal footing with other industries in the colony. Most other industries spring into existence in localities where there are good roads and railways and other means of communication. Therefore to progress in mining and open up new auriferous or mineral ground for occupation by the miner roads and tracks will have to be constructed; and it must not be forgotten that the prosecution of works of this character offers every inducement to people to settle on the land where arable areas are available, and settlers taking up land in the back-country cannot be expected to prosper unless a mining community carries on operations in the neighbourhood, otherwise the distance from the principal markets make the cost of transit of the settlers' produce so great that the latter are unable to compete with their fellow-producers, who may enjoy the advantage of living near large centres of population. Mining and settlement on the land, in distant portions of the colony, will have to advance hand in hand, as the former industry will always be foremost in exploring new blocks of land for the settler to establish himself on, and will provide him with a ready market for his produce. Beyond continued aid to the construction of roads and tracks I would advocate assistance towards obtaining reliable knowledge of the best and most modern modes of treating and reducing refractory ores. It is too well known in this colony that, with the systems we now practice, and the appliances in use for extracting gold and silver, not only is a very large percentage of the former metal lost, but very little of the silver is saved ; and most of the refractory ores in the North Island contain much more silver than gold. The ore recently forwarded to England and America from Tui Creek and Waihi for treatment fully bears out what I have just said; indeed, it is entirely owing to the extremely rich character of these ores that the mines could have been worked and proved remunerative under our present rude process of treatment; but the real value of the ores was only made apparent by sending them out of the country. It will surely be prudent, then, to offer liberal aid to acquire the necessary knowledge for preventing a waste of the great riches which many of the ores of New Zealand contain. The Owen is a new and extensive reefing district opened up within the last twelve months. It is some few miles up the river of that name above its junction with the Buller, and I think that its reefs will support a large population for some years to come. The stone found up to the present time shows itself perhaps of a low grade, and I estimate the gold return at from Bdwt. to 12dwt. per ton; but the immense bodies of stone and the great facilities that offer in this locality for crushing will help to make this character of stone pay for working. The present road to the reefs has been partly formed and constructed; but it is useless to attempt to improve and complete it until the summer season sets in, when probably it will be found to be more economical to lay off and construct a new road for a portion of the distance up the Owen River than to repair the road on 3—C. 1.

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the old line from the main Buller Road to Maggie's Creek, as there is a want of stone for macadamising purposes in close proximity to the track now in use. In referring to the Geological Department, a condensed account of the useful work done during the past year will be found in the general report to be made by the Director. The attention of the geological surveyors has been given chiefly to the structure of the little-known Urewera country lying between Hawke's Bay and the East Cape, the economic importance of which is considerable in connection with the prospective value of the oil-bearing strata in that district. The result of the work just referred to has been to fix with tolerable certainty the exact geological horizon of the oil-bearing deposit, and, further, to determine characters by which it will be possible to trace their boundaries, and in other ways to obtain a scientific basis on which to recommend special localities for boring operations. These operations up to the present time appear to have been conducted in a mere haphazard manner. The survey of the coal-measures which extend through the North Island south from the Waikato Elver to the Wanganui llivcr has also had the attention of the Director, and the survey being continued much useful information has been obtained, which will possess great value in opening up the country through which the North Island Trunk Railway will pass. A further examination has also been made of the northern extension of the same coal-measures in respect to any connection with those at the Bay of Islands. A third survey of importance made has been the completion of the section of the lower coal-bearing formation which. is developed in the Hokonui Range of Mountains in Southland, concerning which information of considerable interest has been obtained, especially in the discovery of valuable seams of brown coal within easy reach of the railroad which passes Winton from Lake AVakatipu to Invercargill. The country between this lake and the West Coast of the Middle Island has also been further and more fully examined for the purpose of defining areas of mineral-bearing country, which areas are gradually attracting the attention of miners. I may point out that the work of all of these surveys tends to fill up gradually the blanks in our geological map of the colony, and thus by degrees it will clearly define those districts which may be looked upon as worthy of further expenditure of money for a more minute mineral survey. Special examinations have also been made of particular mining districts with the view to enable Government to determine what lines of communication by road or railroad are deserving of assistance or attention. Foremost among these may be mentioned the great extension of the Buller Coalfield, which has now been proved to exist in the Valley of the Mokihinui River, distant from Westport thirtythree miles, where seams of coal having a thickness of from 10ft. to over 30ft. are easily accessible at an extremely-moderate elevation above sea-level; and the situation of these new mines will be such, with a small further expenditure of public money, as to render profitable a considerable length of railway which at present is not used. The Owen quartz-reefing district has also received attention. The interesting geological feature occurs there of auriferous veins intersecting strata in decomposed slates that underlie massive crystalline limestones, and the features disclosed resemble those of some of the best and most interesting mineral districts in other parts of the world; while the discovery of bismuth, together with lead, antimony, and zinc, in these lodes is a most promising feature in the mineral character of this part of the country. I have every reason to believe that discoveries similar to this will be repeated in other parts of the north-west district of Nelson, and that the anticipation which has been founded upon its geological structure —" that this district will prove itself to be the Cornwall of New Zealand " —will be fully verified. I must again direct attention to the great delay in the mineral development. of the country which is caused from the very insufficient facilities now existing in the Geological Museum for the thorough manipulation and study of the enormous number of valuable and interesting specimens which are there accumulating, and to which attention was drawn last year. The additions made to the collection during the past year are very important, and the

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other branches of the public service which are intrusted to the care of the Geological Department have been maintained in a satisfactory state of efficiency. In the Laboratory 345 analyses have been performed, and for many of these, which were solely in the interest of private persons, moderate fees have recently, by my direction, been charged, with the view of making the department partly a self-sustaining one, and also preventing the time of the Analyist being occupied in fruitless work. In the Meteorological branch the previously-existing chief stations are maintained, with the exception of Dunedin, which had to be removed; but its re-esta-blishment on a more suitable site is now under consideration. The extreme value of the most correct returns of the rainfall in all the different districts of the colony have already been recognised, both in the interests of agricultural and pastoral pursuits, as well as for the better management of our great engineering enterprises connected with the formation of harbours and other public works. The number of rain-recording stations has therefore, at a very slight additional cost, been largely increased. The weather-reporting, both by means of intercolonial exchange and local forecast for the benefit of mariners on the coast, is carried out on an economical system that has been approved by the highest authorities skilled in this science. The distribution of correct mean-time throughout the colony, the verification of the standard weights and measures, and the superintendence of the patent library are all duties which have been satisfactorily performed by the staff of the Geological Department. In concluding my report on this occasion on the mining industry of New Zealand I may be excused for stating my opinion that this colony has a great future before it in connection with its mineral resources. Its healthy and invigorating climate, its numerous splendid rivers, creeks, and streams, running rapidly at all seasons of the year, which are capable of being converted into motive-power to drive machinery, and its rich arable and pasture lands all point to the colony as one of the most suitable for enterprise and the investment of capital in many directions where industries may be established to give constant and lucrative employment to hundreds of thousands of people. The more that I look calmly on the circumstances of the colony the more do I feel assured that there is no necessity for that continual wail of depression that has been sounding and echoing and re-echoing so long in our midst, that the day is not far distant when those who now seem to look upon mining with carelessness, distrust, and suspicion will readily indorse the views I have here, enunciated, and turn an earnest attention to our mineral lands as the source of sure and permanent wealth to New Zealand. I have endeavoured, in as concise a form as I deemed the importance of the subject would admit, to marshal many facts appertaining to the mining industry. I trust that, when the advantages already gained and to be gained by the colony by the development of our mineral resources, the opening-up of the country, and the larger settlement of population that concurrently goes on are considered, that the warm interest I have expressed on the subject in. the present report will be held to be justified. To His Excellency W. J. M. LARNACH. Sir Wm. E. Drummond Jervois, G.C.M.G., C.8., Governor.

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No. 1. Table showing the Comparison in Quantity and Value of Gold entered for Duty for Exportation for the Years ending the 31st March, 1886 and 1887; and of other Minerals exported, including output of Coal from the Mines, for the Year ending the 31st December, 1886 and 1887; also the total Value since the 1st January, 1853.

No. 2. Gold Produce of the World from 1851 to 1881, and for 1882, 1883, and 1884.

Name of Metal or Mineral. Date ending For Year ending 31st March, 1836, and 31st December, 1885. For Year ending 31st March, 1887, and 31st Docembor, 18SC. Total from 1st January, 1853, to 31st March. 1837, and 31st December, 1886. Quantity. Valuo. Quantity. Valuo. Quantity. Value. Gold Silver31 Mar., 1887 31 Dec, 1880 Oz. 237,371 16,624 £ 948,615 3,169 951,784 Oz. 232,081 12,108 £ 922,000 2,940 Oz. 11,081,345 470,056 £ 43,488,735 121,268 Total gold and silver .. 253,995 244,189 925,546 11,557,001 43,610,003 Mineral Produce. 31 Dec, 1886 Tons. £ Tons. 20 £ 390 Tons. 1,392 5,666 855 12,351 i 51 13,542 150,465 3,455^ £ 17,787 37,367 9,515 44,419 220 51,680 154,814 5,588 Copper ore Chrome ore Antimony ore Manganese ore Hematite ore Mixed minerals Coal exported Coke exported Coal output of mines consumed in the colony Kauri gum 666 602 51 114 43,893 267 5,289 1,716 208 993 51,257 385 "62 328J 445 40,136 497 iJ784 1,310 1,846 52,133 715 467,170 5,875i 518,638J 233,585 299,762 593,195 488,217 4,920| 244,108 257,653 3,751,709 104,400J 1,875,963 3,943,152 Total quantity and value of minerals Value of gold and silver as above 540,626£ 559,945 4,043,887J 6,140,505 951,784 925,546 43,610,003 Total value of minerals produced including gold and silver 1,544,979 1,485,491 49,750,508

From Ounces. Value. 1851 to 1860 1861 to 1870 1871 to 1881 64,858,380 60,591,530 60,327,700 £ 259,433,520 242,366,120 241,310,824 Total 31 years 185,777,016 743,110,404 1882. 1883. 1884. To1 ;al. Country. Ounces. Value. Ouncos. Value. Ounces. Value. Ounces. Value. United States Australasia Russia Colombia Venezuela Africa Canada Austria-Hungary Mexico Brazil Japan Germany Chili 1,572,199 1,553,542 1,154,603 186,534 125,514 96,450 52,983 50,797 45,299 35,879 30,607 12,088 7,877 5,755 3,794 3,504 3,504 547 322 6,770,833 1,451,251 6,250,000 6,086,860 1,430,501 5,358,613 4,972,486 1,154,603 4,972,486 803,333 180,534 803,333 540,641 161,457 695,429 415,375 96,450 415,375 228,110 40,135 198,750 218,764 52,662 226,795 195,046 46,232 199,091 154,520 8,230 35,473 131,775 30,607 131,775 52,060 14,693 63,275 33,958 7,877 33,958 24,844 5,755 24,844 16,364 3,794 16,364 15,078 3,504 15,078 15,078 3,504 15,078 2,354 1,190 5,123 1,385 321 1,385 20,678,864 4,705,30o'l9,462,225 6,770,833 6,086,860 4,972,486 803,333 540,641 415,375 228,110 218,764 195,046 154,520 131,775 52,060 33,958 24,844 16,364 15,078 15,078 2,354 1,385 1,451,251 1,430,501 1,154,603 186,534 161,457 96,450 46,135 52,662 46,232 8,230 30,607 14,693 7,877 5,755 3,794 3,504 3,504 1,190 321 1,489,928 1,502,543 1,055,452 180,534 101,457 96,450 55,000 53,305 57,227 8,230 30,607 17,843 7,877 5,755 3,794 3,504 3,504 611 322 £ 0,416,666 5,812,205 4,545,480 803,333 695,429 415,376 225,706 229,522 246,487 35,473 131,775 70,833 33,977 24,842 16,363 15,078 15,078 2,030 1,385 4,513,378 4,486,580 3,364,658 559,602 448,428 289,350 154,118 156,764 148,758 52,339 91,821 44,624 23,631 17,265 11,382 10,512 10,512 2,348 965 £ i 19,437,499 i 17,257,738 : 14,490,452 ! 2,409,999 1,931,499 1,246,126 652,566 675,081 640,624 225,466 395,325 192,163 101,893 74,530 49,091 45,234 45,234 10,107 4,155 59,884,787 Peru Argentine Republic Bolivia Italy Sweden Turkey 4,941,798 4,739,943 19,743,698 14,387,041 Total from 1851 to 1881, inclusive as abc )ve 185,777,616' 743,110,464 Grand [ total I 200,164,657 802,995,251

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No. 3. Produce of Silver in the World for the Years 1882, 1883, and 1884.

No. 4. Summary of Value of Minerals produced in the United Kingdom and Possessions in 1884.

1882. 18S3. 1881. Total. Country. Ounces. Value. Ounces. Value. Ounces. Value. Ounces. Value. Dnited States Mexico 3olivia 3-ermany .. Dhili Spain Austria-Hungary .. Peru rapan Colombia France Argentine Republic Russia 30,203.56S 22,617,782 8,509,366 6,911,671 4,118,608 2,395,175 1,514,344 1,475,974 679,040 587,798 459,456 325,004 250,159 189,460 79,571 09,573 52,758 48,225 13,889 £ 9,750,000 0,091,208 2,291,666 1,861,386 1,109,375 645,046 407,963 397,500 182,809 158,333 123,763 87,547 67,38.1 51,032 21,433 18,733 14,209 12,990 3,739 35,733,343 22,869,806 12,377,268 7,416,812 4,118,608 2,395,175 1,565,962 1,475,974 679,040 587,798 204,345 325,000 250,159 181,487 69,155 09,573 52,758 50,893 13,889 £ 9,625,000 6,160,120 3,333,333 1,997,771 1,109,375 645,046 421,801 397,500 182,809 158,333 55,057 87,547 07,381 48,884 18,629 18,733 14,209 13,709 3,739 37,750,691 21,086,156 12,377,268 7,976,897 4,118,608 114,518 1,588,982 1,475,974 679,040 687,79S 204,345 825,004 300,152 205,342 89,634 69,573 52,758 53,384 13,889 £ 10,166,067 5,678,726 3,333,333 2,148,262 1,109,375 30,834 427,931 397,500 182,869 158,333 55,057 87,547 SO,834 55,310 24,158 18,733 14,209 15,724 3,739 109,687,602 66,573,744 33,263,902 22,305,380 12,355,824 4,904,868 4,669,788 4,427,922 2,037,120 1,703,394 868,146 975,008 800,470 576,289 238,360 208,719 158,274 157,502 41,667 £ 29,541,667 17,930,054 8,958,332 6,007,419 3,328,125 1,320,926 1,257,695 1,192,500 548,607 474,999 233,875 262,641 215,596 155,226 64,220 56,199 42,627 42,423 11,217 S'orway Australasia Curkey Canadian Dominion Sweden Italy 86,501,921 90,437,045 24,359,036 89,075,013! i 266,013,979 71,644,348 Totals 23,296,171 23,989,141

Description of Mineral. United Kingdom. Possessions. Total. Alum clay Alum shale Antimony ore Arsenic Arsenical pyrites Barytes Bismuth Bog-iron ore Clay (excepting ordinary clay) Coal Cobalt and nickel ore Copper ore Copper precipitate Diamonds Fluor spar Gold Gypsum Iron ore Iron pyrites Kauri gum Lead ore Manganese Ochre, umber, &c. Oil shale Petroleum Phosphate of lime Plumbago Salt Silver Slates a,nd slabs Stone, cfec. Sulphate of strontia Tin ore Walfrum .. Zine ore £ 4,280 245 40 57,841 1,143 29,356 1,935 607,396 43,446,183 237 109,427 3,180 730 45,441 4,463,275 18,139 £ '14,308 "2,770 3,012,383 1,380,376 2,807,329 5,902,890 41,121 70,144 £ 4,280 245 14,348 57,841 1,143 29,350 2,770 1,935 667,396 46,458,566 237 1,495,803 3,186 2,807,329 730 5,962,890 86,562 4,533,419 18,139 342,151 690,562 10,256 18,970 458,956 93,500 196,040 152,021 1,030,903 103,047 1,177,020 8,996,641 22,844 1,582,441 1,104 74,029 401,555 1,439 18,976 386,780 342,151 289,007 8,817 103,976 678,343 68,791 1,174,020 8,850,854 22,844 669,254 1,104 74,029 72,170 93,500 92,004 152,021 352,560 34,256 3,000 145,787 913,187 Totals 01,300,819 15,795,847 77,096,666

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Table No. 5. Table showing the Value of the Mineral Productions of the Nations and Colonies enumerated for 1884, and the Value per Head of Population.

Table No. 5a. Mineral Production of the British Colonies and Possessions, 1884.

Nation or Colony. Value of Mineral Products. Population estimated in 1884. Valuo of Mineral Product.3 per Head of Population. Jnited States of America Jnited Kingdom lermany franco 3elgium mili Austria Spain /ictoria Jew South Wales Argentine- Republic laly •Tew Zealand Queensland South Australia Tasmania Western Australia £ 84,366,856 61,300,819 23,247,150 15,703,703 14,213,165 9,208,139 8,655,962 5,770,578 3,231,163 3,003,870 2,560,575 2,223,016 1,030,610 1,339,525 495,096 420,985 6,640 £ 55,000,000 36,325,115 45,222,113 37,672,048 5,784,954 2,405,041 38,000,000 10,958,178 973,403 927,268 2,830,000 29,361,032 572,136 318,606 312,781 130,541 32,988 £ a. d. 1 10 8 1 13 7 0 10 3 0 8 4 2 9 2 3 16 0 0 4 6 0 0 1 3 6 4 3 4 9 0 18 1 0 16 2 17 0 4 4 1 1 11 7 3 4 6 0 4 6 Totals 237,378,452 272,826,204 0 17 5

Colony or Posession, and Description of Mineral. Unit. Quantity. Value. Total Va ue. Tokth Ameeica :— Dominion op Canada — Gold Silver ore .. Copper metal Iron ore Lead ore Gypsum Manganese ore Phosphate of lime Petroleum Salt Slates Mica, pyrites, asbestos Stone, &c. Coals Ounces Tons £ 55,000 37 1,762 88,955 50 185,851 885 21,821 550,000 145,000 £ 225,706 2,584 42,979 40,133 200 41,121 7,567 92,064 93,500 22,800 £ Barrels Squares (• Not given 47,740 Tons 1,876,643 619,336 Newfoundland — Copper and ore ., Iron ore 1,235,730 Tons 4,454 950 19,825 1,440 .peica :— Cape of Good Hope— Diamonds Copper ore Coal 2,263,734 20,348 9,000 21,265 Carats Tons 2,807,329 405,415 7,250 3,219,994 Gold Coast— Gold-bearing quartz Gold Tons Ounces 13 14,567 242 52,435 52,677 -sia :— India— Coal Salt (No information with regard to other minerals.) Tons 1,315,976 915,307 657,988 322,107 9£0,095

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Table No. 5a— continued. Mineral Production of the British Colonies and Possessions, 1884 — continued.

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Colony or Possession, and Description of Mineral. Unit. Quantity. Value. Total Value. .sia— continued. Ceylon— Plumbago Salt Tons £ 9,121 8,523 £ 152,021 5,540 £ 157,561 Stiuits Settlement — Tin metal .. Tons 634 634 .ustralasia :— Victoria — Gold SilverIron ore Tin ore Lignite Coals Antimony ore Slates Stones Ounces Tons 778,618 27,070 Not given Not given 577 Not given Not given Not given Not given 3,114,472 6,767 4,000 1,900 289 3,280 1,800 850 97,805 3,231,163 New South Wales — Gold Silver Copper Iron Lead ore (silver lead ore) Tin Antimony ore and metal Bismuth Manganese Oil shale Coal Ounces Tons 107,199 93,600 7,305 3,759 9,167 6,665 433 14 4 31,618 2,749,109 395,292 19,780 416,179 24,571 241,940 521,587 6,458 2,770 40 72,176 1,303,077 New Zealand—■ Gold Silver Copper ore Manganese Kauri gum Coal Ounces 229,946 24,914 20 318 6,393 480,831 921,797 5,125 106 809 342,151 360,622 3,003,870 Tons 1,630,610 Queensland — Gold Copper ore Lead ore Tin ore Antimony ore Manganese ore Coal Ounces Tons 307,804 1,653 4,303 15,347 677 55 129,980 1,077,314 30,872 36,097 134,867 6,050 165 54,160 1,339,525 South Australia— Gold Copper ore Copper metal Lead ore Manganese ore Salt (white) Slates (roofing) Slabs Ounce's Tons 3,970 23,968 4,572 386 59 855 48,651 5,736 15,469 181,477 287,753 5,898. 236 2,113 296 1,854 No. Tasmania— Gold Tin ore Coal Ounces Tons 42,340 5,527 7,194 495,096 160,405 254,199 6,381 420,985 Western Australia — Copper ore Lead ore Tons 188 696 1,770 4,872 6,642 Total valuo of mineral produce in - the British Colonies 15,795,857

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No. 6. Table showing the Value of the Production of Gold and Silver in the Australasian Colonies and United States of America for the Year 1885, and Value of same per Head of Population.

No. 7. Table showing the Quantity and Value of Gold entered for Duty for Exportation from New Zealand for the Years ending the 31st March, 1886, and 1887, and the Total Quantity and Value from 1857 to 31st March, 1887.

Gold. Silver. Total for Colony or State. Population of Colony or State. Value of Gold and Silver per Head o( Population. Austbalasian Colonies— New Zealand .. Victoria New South Wales Queensland Tasmania £ 948,615 2,940,S72 378,665 1,088,293 124,234 £ 16,624 10,088 159,187 64,235 & 965,239 2,950,960 537,852 1,152,528 124,234 575,226 991,869 957,914 320,916 133,791 . £ s. d. 1 13 7 2 19 3 0 11 2 3 10 0 0 18 6 Totals.. 5,480,649 250,134 5,730,813 2,985,716 1 18 4* States in America — Alaska Arizona California Colorado Dakota Georgia Idaho Montana Nevada New Mexico North Carolina Oregon South Carolina Utah'.. Washington Other States .. 62,500 183,333 2,645,833 875,000 666,667 28,333 375,000 687,500 645,833 166,667 31,607 166,067 8,958 37,500 25,000 18,750 417 791,667 520,833 3,291,666 20,833 729,166 2,095,833 1,250,000 625,000 625 2,083 62,917 975,000 3,106,666 4,100,606 687,500 28,333 1,104,166 2,783,333 1,895,833 791,667 32,292 168,750 8,958 1,443,750 39,583 19,792 33,420 40,440 804,694 194,327 135,177 1,542,180 32,010 39,159 62,266 119,565 1,399,750 174,768 995,577 140,963 75,116 1 17 3 24 2 2 3 13 3 21 8 10 5 18 0 0 5 33 17 2 71 0 6 30 9 0 6 12 5 0 0 5 0 19 3 0 0 2 10 4 9 0 5 3 1,406,250 14,583 1,042 Totals.. 4,025,208 10,749,998 17,375,206 5,850,018 2 19 4 * Average.

Year ending 31st March, 1887. Year ending cist March, 18S0. Incret Decrease ending 31e 188 ise or for Year 3t March, !7. Total Quanti from Jam to 31st Me ity and Value uary, 1857, iron, 1887. Name of Goldfiold. Port of Entry. Quantity. Value. Quantity. I Value. Increase. Decrease. Auckland ., Oz. 32,051 £ 127,390 Oz. 46,034 £ 183,015 Oz. Oz. 13,983 Oz. 1,522,701 £ 5,660,692 Auckland Wellington Wellington 47 169 47 188 706 Marlborough ( Picton Nelson Blenheim .. 399 78 1,430 293 530 2 10 2,120 8 39 76 131 "lO 53,854 208,031 542 2,167 65 Nelson Dunedin .. 477 1,723 Nelson f t 2,543 115 9,508 458 2,738 10,406 115 195 Nelson Westport .. Greymouth Hokitika .. Wellington 2,658 9,966 2,738 10,406 80 223,612 888,564 West Coast I 1,004 17,106 66,284 32,597 7 3,918 68,223 261,387 130,388 30 1,126 17,585 59,501 34,163 20 4,452 70,333 238,007 130,051 80 6,'783 122 479 1,566 13 18,789,630 110,998 463,946 112,395 449,523 4,603 4,733,889 Canterbury Dunedin .. 24 96 Otago I Dunedin .. Invercargill Riverton .. 73,259 3,898 2,693 293,447 15,187 10,772 66,237 3,520 1,602 206,180 13,899 6,438 7,022 373 1,091 4,547,077 17,941,016 Totals .. 79,850 319,406 71,359 286,517 8,491 232,081 922,600 233,068 931,628 987 11,081,345 43,488,735

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No. 8. Total Quantity and Value of Gold entered for Duty for Exportation from the 1st January, 1857, to the 31st December, 1886. (This return shows the produce of the various goldfields. Gold entered at Nelson from Hokitika, Greymouth, and Westport is put under the head of "West Coast," and from Invercargill and Riverton under the head of "Otago.")

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Auckland. Nelson. Marlbc •ough. West Coast. Otago. Wellii igton. Canterbury. Toi ;al. Oz. Value. Oz. Value. Oz. Value. Oz. Value. Oz. Value. Oz. Value. Oz. Value. Oz. Value. £ £ 10,437 40,422 13,226 51,272 7,336 28,427 4,538 17,585 6,335 24,552 10,422 40,386 9,580 37,120 14,410 55,841 12,137 47,030 7,650 29,643 9,123 35,918 5,999 38,396 10,631 42,524 12,244 48,692 10,014 40,056 8,175 32,700 13,697 54,786 5,642 22,158 4,577 17,866 14,018 55,862 5,367 21,092 4,463 17,223 2,993 11,424 3,222 12,223 3,453 13,039 3,289 12,494 2,064 7,724 2,159 8,002 2,798 ! 10,337 2,467 I 9,521 £ I £ £ £ £ £ 40,422 52,464 28,427 17,585 751,873 1,591,389 2,431,723 1,856,837 2,226,474 2,844,517 2,698,862 2,504,326 2,362,995 2,157,585 2,787,520 1,731,261 1,987,425 1,505,331 1,407,770 1,284,328 1,496,080 1,240,079 1,148,108 1,227,252 1,080,790 1,002,720 993,352 921,797 948,615 897,222 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 i 308 iil92 1,239 4,098 4,483 13,853 3.448 10,552 5.449 17,096 5,814 17,463 6,637 18,277 53,660 168,874 132,451 434,687 85,534 319,146 330,326 1,188,708 104,890 369,341 119,449 437,123 76,910 305,068 69,485 262,156 56,057 221,905 99,081 . 403,627 55,982 ; 220,454 37,901 \ 154,295 42,720 , 176,416 35,516 : 141,326 33,059 131,007 41,291 163,618 36,087 143,564 42,989 170,416 32,271 128,140 24,838 7,952 469 501 404 666 1,852 1,867 2,057 1,274 1,198 1,159 450 870 404 879 1,550 1,378 1,352 636 1,079 540 399 ! I I 95,231 30,814 1,818 1,978 1,616 2,664 7,408 7,468 : 8,228 5,050 I 4,748 j 4,636 1,796 3,197 ; 1,617 ! 3,460 I 5,650 | 4,531 5,400 2,524 4,306 2,160 : 1,430 1,463 289,897 552,572 511,974 405,762 317,169 280,068 232,882 172,574 188,501 157,531 158,678 133,014 153,198 144,634 142,822 144,090 127,544 130,048 116,905 111,686 117,861 111,175 5,560 1,127,370 2,140,946 2,018,874 1,608,844 1,269,664 1,121,525 931,528 690,296 756,442 631, 203 635,480 531,274 612,823 578,508 571,061 575,258 509,971 519,978 467,152 446,517 471, 325 440,399 187,696 399,201 614,387 436,012 259,139 168,871 158,670 171,649 153,364 165,152 154,940 157,674 182,416 135,107 121,423 118,477 113,169 105,003 102,869 113,666 102,670 83,446 87,478 78,810 73,183 79,104 727,321 1,546,905 2,380,750 1,689,653 1,004,163 654,647 623,815 686,596 613,456 660,694 619,760 630,696 734,024 542,154 \ 487,632 473,491 455,341 422,277 407,868 457,705 411,923 333,804 352,334 318,932 294,378 317,543 30 io ioi 52 120 10,437 13,534 7,336 4,538 194,031 410,862 628,450 480,171 574,574 735,376 686,905 637,474 614,281 544,880 730,029 445,370 505,337 376,388 355,322 322,016 371,685 310,486 287,464 305,248 270,561 251,204 248,374 229,946 237,371 226,668 37 380 24 96 189 Totals .. 222,466 ; 884,315 1,513,037 5,622,402 53,774 207,730 i 4,702,048 18,661,998 4,513,576 17,847,862 193 726 24 96 11,060,118 43,225,129

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No. 9. Table showing the Total Quantity of Mineral Ores, the Product of Mines other than Gold, exported from the Colony up to 31st December, 1886.

Silver. Copper Ore. Chrome Ore. Antimony Ore. Manganese Ore. Hematite Ore. Mixed Mineral Ore. Coal. Coke. Kauri Gam. Totals. Oz. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Ounces and Tons. Value. £ £ £ £ £ £ £ £ £ £ 15,972 28,864 4,514 18,591 35,251 20,037 20,776 9,851 9,888 11,107 27,026 60,590 46,060 70,572 77,491 72,493 111,307 175,074 167,958 154,167 85,816 79,986 138,523 109,234 118,348 132,975 147,535 242,817 253,788 260,369 336,606 342,151 299,762 257,653 £ 15,975 28,86?: 4,51^ 18,59] 35,25] 25,06( 23,50] 12,88! 11,70! 36,85( 31,34< 65,50( 46,06( 72,28^ 81,415 74,68( 115, 10( 188,08! 192,71/ 164,98! 96,32? 91,95' 149,27! 129,37! 137,71: 154,68' 168,00: 275,79! 271,63! 281,011 350,081 353,02; 362,77! 318,78! 1853 1854 1855 1856 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 •• - 11,063 37,123 80,272 37,064 36,187 40,566 29,085 12,683 33,893 23,019 20,645 20,005 18,885 5,694 16,826 24,914 16,624 12,108 - •• 2,993 11,380 23,145 9,910 9,850 10,380 7,569 3,171 7,556 5,755 4,512 4,500 4,236 1,286 3,785 5,125 3,169 2,946 '• 351 245 137 110 51 - "246 84 •• J 7 5,000 2,605 1,590 1,300 1,024 2 1700 977 "l20 •• 3 8 116 52 3,843 595 768 281 25 120 1,440 520 24,719 4,318 4,910 1J315 •• - - - - •• - .. " .. •■ " " - ■• I 2 •■ 1 261 973 1,027 750 1,672 1,696 990 724 1,463 3,385 1,854 2,658 6,362 7,144 7,020 6,621 3,207 6,522 6,104 43,893 46,136 •• 4 •• J 2 400 1,228 1,210 800 1,508 1,612 . 855 655 1,363 3,129 1,954 2,071 5,139 6,187 5,977 5,610 2,380 4,879 4,461 51,257 52,133 •• 830 1,661 355 1,440 2,522 1,811 2,010 1,046 856 1,103 1,400 2,228 1,867 2,535 2,685 2,690 2,850 4,391 5,054 4,811 2,834 2,569 2,231 2,888 3,633 3,445 3,229 4,725 5,461 5,533 6,518 6,393 5,875| 4,920f 830 1,661 355 1,440 2,522 2,167 2,263 1,300 1,018 4,997 1,995 2,996 l,8o7 3,077 3,904 3,801 14,663 43,193 87,022 42,886 39,745 44,685 34,716 20,658 42,5754 35,439 33,367 37,182 34,323 19,713 31,779J 37,985 68,092£ 64,519| i 21 "50 - " •• J 6 55 •• J "ll5 1,105 •• 4 60 30 31 "l02 612 24 900 804 2,516 2,140 2,611 1,271 2,181 384 318 602 328J 10,416 8,338 10,423 3,283 6,963 1,155 809 1,716 1,316 3,180 2,366 2 2,674 1,955 2,784 22 14,824 9,664 8 11,335 4,303 8,597 110 87 15 53 25J 85 154 87 223 275 1,430 236 267 497 228 51 189 72 177 324 135 353 480 2,057 372 385 715 5 9 46 20 36 41 678 106 i "i i " "l2 "390 "666 62 1,784 'so j - 208 "ll4 445 "993 1,846 20 Totals 5,666 37,367 51 220 3.455J 5,588 476,656 121,268 1,392 17,787 855 9,515 12,351 J 44,419 13,542 51,680 150,465 154,8141 104,400J| 13,943,152 768,836* 4,385,811

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No. 10. Table showing the Value of Goldfields Revenue, including Gold Duty, since 1860.

Auxillary Table showing the Gold Duty and Goldfields Revenue from the Different Districts in 1886.

No. 11. Table showing the Increased Production of Coal, Year by Year, during the last Nine Years, and the Decrease of Coal imported for the same Period.

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Year ending 31st December, 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 Quarter ending 31st March, 1887 £ s. d. 551 4 7 37,873 2 2 52,232 11 11 .. 108,638 5 4 89,153 14 8 96,015 10 1 .. 132,410 3 4 .. 130,104 15 5 .. 130,553 15 3 .. 140,104 3 5 .. 124,880 17 4 .. 138,934 14 3 114,055 9 9 91,199 10 2 86,513 18 4 87,333 1 3 81,682 17 2 62,098 17 7 54,606 3 1 48,610 9 4 50,784 12 8 49,938 17 1 52,441 9 11 52,271 16 0 53,814 1 1 41,510 13 0 40,814 2 9 10,473 1 3 Totals .. .. £2,159,551 18 2

Name of District. Gold Duty. Goldflelds Revenue. Totals. cuckland felson Vellington .. larlborough .. Vest Coast .. )tago £ s. d. 3,227 2 0 407 16 0 5 4 0 39 18 0 11,117 10 0 7,910 8 0 £ s. d. 4,318 19 9 181 15 0 97 12 0 8,148 16 11 5,359 1 1 £ s. d. 7,546 1 9 589 11 0 5 4 0 137 10 0 19,266 6 11 13,2o9 9 1 Totals 22,707 18 0 20,106 4 9 40,814 2 9

Coal raised in the Colony. Coal imported. Tear. Tons. Yearly Increase. Tons. Plus or Minus. Increase ana Decrease. .878 .. .879 .. .880 .. .881 .. .882 .. .883 .. .884 .. .885 .. .886 .. 162,218 231,218 299,923 337,262 378,272 421,764 480,831 511,063 534,353 69,000 68,705 37,339 41,010 43,492 59,069 30,232 23,290 174,148 158,076 123,298 129,962 129,582 123,540 148,444 130,202 119,873 + 16,072 34,778 6,664 380 6,042 24,904 18,242 10,329 +

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No. 12. Table showing the Output of Coal from the various Mining Districts, and the Comparative Increase and Decrease, for the Years 1885 and 1886, together with the Total Approximate Quantity of Coal produced since the Mines were opened.

No. 13. Table showing the Different Classes of Coal from the Mines in the Colony.

No. 14. Table showing the Number of Coal-mines in Operation, the Number of Men employed, and the Output of Coal per Man.

No. 15. Return showing the Quantity and Value of Coals imported into and exported from New Zealand during the Year ended the 31st December, 1886.

Name of District. Output of Coal. Pins or Minus. Increase or Decrease. Approximate Total Output of Coal up to 31st December, 1886. 1885. 1886. Kawakawa Whangarei, Kamo, and Whauwhau Waikato Pelorus West Wanganui Westport Reefton Greymouth Malvern Timaru Otago Southland Tons. 37,172 26,847 47,715 Tons. 30,775 30,947 43,072 + Tons. 6,397 4,100 4,643 Tons. 615,402 180,329 319,321 711 21,156 401,516 28,048 769,310 207,964 1,576 1,426,498 80,783 2,156 78,284 2,311 140,182 19,023 200 144,377 12,796 4,168 119,929 2,809 130,485 14,072 650 141,697 15,749 + + + 2,012 41,645 498 9,697 4,951 450 2,680 2,953 + + Totals 511,063 534,353 23,290 4,052,614

Name of Coal. Output of Coal. Plus or Minus. Increase or Decrease. Approximate Total Output of Coal up to the 31st December, 1886. 1885. 1886. iituminous 'itch Srown .. jignite .. Tons. 257,794 64,187 173,029 16,053 Tons. 285,357 83,179 154,305 11,512 + + Tons. 28,163 18,993 18,724 4,541 Tons. 1,808,459 640,978 1,499,476 104,302 Totals 511,063 534,353 23,891 4,053,215

Number of Mines working. Number of Miners employed in each Mine. Total Number of Men employed. Output of Coal in Tons. Output in Tons per Man. 75 12 8 15 .10 I to 4 men in each 5 to 10 II to 20 21 men and upwards 124 79 91 1,311 1,605 28,807 27,096 35,117 443,473 232 343 386 338 110 1,605 534,493 333

Imported. Exported. Countries whence imported. Quantity. Value. Countries to which exported. Quantity. Value. Jnited Kingdom .. Queensland Tew South Wales .. rictoria South Sea Islands .. Tons. 1,956 820 116,889 200 8 £ 2,892 810 119,433 200 10 United Kingdom* .. Victoria Bengal Hongkong.. South Sea Islands .. Tons. 43,678. 2,381 346 121 14 £ 50,418 1,740 380 121 18 Totals .. 119,873 123,345 Totals .. 46,540 52,677 * Included in exportation iroduce. Department of Trad< Wellington, 5th io United Ki igdom, 404 ti is, value £544, of foreign coal; remainder is New Zealand and Custo: May, 1887. IS, William Sej Se< ED, iretary.

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No. 16. Number of Miners employed during the Years ending 31st March, 1887, and 1886.

[Approximate Coat of Paper.— Preparation, nil; printing (2,500 copies), £32 16s.]

By Authority: Geobgb Didsbuby, Government Printer, Wellington.—lBB7.

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Alluvia] Miners. Quartz-miners. Totals. Grand Totals. Mining District. European. . Chinese. European. Chinese. European. Chinese. 1887. 1886. AUCKLAND — North Hauraki South Hauraki .. Te Aroha Marlborough— Pelorus Wairau and Queen Charlotte Sound Nelson — Wangapeka Collingwood, Takaka, and West Wanganui Inangahua Ahaura Charleston Westport, including Addison's, Northern Terraces.Waimangaroa, North Beach, Mokihinui, Karamea, and Lower Buller Valley Lyell Murchison Westland — Waimea and Stafford Totara Hokitika and Kanieri Kumara Greymouth Arnold Greenstone Okarito Jackson's Bay Otago— Hindon Tuapeka Clyde .. Cromwell Alexandra Roxburgh Black's Waikaia, Upper Waikaia, Nokomai, Waikaka, and Waikawa Orepuki and Longwood Wakatipu Goldfields —Arrow, Maoetown, Cardrona, Kawarau, Bracken's, and Motatapu Naseby Queenstown Kyeburn and Clarke's Hamilton, Sowbum, &c. Hyde and Pullerton's Serpentine Macrae's, Strath-Taieri, and Shag Valley Maerewhenua St. Bathan's and Ida Valley 60 40 13 126 130 470 252 176 40 150 220 300 450 400 300 440 175 70 56 300 200 5 30 10 150 80 135 20 275 115 50 4 150 986 102 "39 420 "37 140 100 16 150 986 102 60 40 13 165 550 470 252 213 180 250 220 316 450 400 300 440 175 70 56 300 200 5 30 10 150 80 135 20 275 115 50 4 150 986 102 60 40 13 165 850 670 252 218 210 260 370 396 585 420 575 555 225 74 56 145 900 95 106 52 13 150 656 583 220 207 210 148 580 416 600 425 590 545 150 65 54 35 457 43 290 140 130 155 168 5 440 10 141 65 56 55 139 10 20 30 18 3 45 472 43 320 158 133 155 168 5 440 10 141 65 56 55 139 50 912 53 461 223 189 210 307 47 820 55 490 195 201 180 221 100 200 300 32 6 60 106 260 300 32 406 292 380 255 160 200 45 55 40 15 50 100 75 100 15 7 10 85 '300 160 500 45 55 40 15 50 100 75 100 15 7 10 85 260 575 145 70 47 25 135 260 500 145 70 47 55 140 42 110 20 "l8 42 128 20 42 148 42 165 Summabx. Auckland Marlborough Nelson Westland Otago 100 1,357 2,411 2,435 545 829 1,655 1,238 736 16 465 1,238 100 2,093 2,427 2,895 545 829 1,655 1,238 100 2,638 3,256 4,560 1,140 158 2,187 3,425 4,268 Totals .. 6,303 3,029 2,455 8,753 3,029 11,782 11,178