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Report Director of Mines ARI958 1959. (No. 21.) TASMANIA REPORT OF THE DIRECTOR OF MINES FOR YEAR ENDED 31ST DECEMBER 1958 TASMANIA: D. E. WILKINSON GOVERNMENT PRINTER, HOBART. 1959 43478 (No. 21.) 1959. 2 TABLE OF CONTENTS Page Annual Report of the Director of Mines 3 Mines 3 Metal Prices 3 Exploration 4 Legislation 4 Operations and Production 5 Cadmium 5 Cobalt Oxide 5 Copper 6 ~d 6 Iron Oxide . 7 Lead 7 Manganese Dioxide 7 Nickel 7 Osmiridium 7 Pyrite 8 Silver 8 Sulphur 9 T~ 9 Tungsten (Scheelite) 12 Tungsten (Wolfram) 12 Zinc 12 Zinc SUlphate 13 Clay 13 Dolomite 14 Kaolin 14 Limestone 14 Ochre 15 Pebbles 15 Silica 15 Building Stone 15 Crushed and Broken Stone 15 Gravel 16 Sand 16 Coal 16 Foreign Ores 17 Statistics of Mining Companies 18 Revenue 18 Leases and Licences in Force. 19 Leases and Licences Issued 19 Leases and Licences Applied for 19 Authorities to Prospect Issued 20 Average Annual Prices for Minerals 20 Mineral Production Since 1880 21 Quantity and Value of Minerals Produced in 1958 22 Departmental Activities 23 Aid to Mining 23 Statement of Receiots and Payments of the Mining Trust Fund for the Year ended 31st December, 1958 . 23 Drilling 23 Geological Section 24 Publications 24 Chemical and Metallurgical Section 24 Decisions of the Warden's Court . 25 Mine Manager's Certificate . 25 Staff 25 Ohituarv 25 Mines Draughting Section 25 Geoloo:ical and Engineering Draughting Section 25 Exhibition 25 Appreciation of S'ervices . 25 Appendices 26 Report of Chief Geologist . 26 Report of Chief Chemist and Metallurgist . 30 Report of Chief Inspector of Mines , 33 Report of Chief Inspector of Explosives . 34 Reports of Inspectors of Mines and Explosives 35 Report of the Ringarooma and Cascade Water Board . 38 Report of the Mt. Cameron Water-Race Board . 39 1959. (No. 21.) 3 REPORT OF THE DIRECTOR OF MINES Department of Mines. profitable level and to minimise the effect of the Hobart, 1st July, 1959. import quota system imposed by the United States, the continued fall in the price of tungsten THE HONOURABLE THE MINISTER ~'OR MINES. and movements in overseas tin prices. Sir, The London price of copper fell in the early I HAVE the honour to present my report on the part of the year to £160 pel' ton but as a result mining industry for the year ended 31st of increased consumption and strikes in certain December, 1958. producing countries the price rose to £260 pel' ton later in the year. The Australian price of The total value of the mineral output was £330 per ton has been stabilised partly by import £All,838,054, as compared with £A12,588,719 for duty and partly by bounty. When the price based the previous year. The fall in value has been due on weekly average prices on the London Metal to the decline in the market price of copper, lead, Exchange is the equivalent of £A285 or more per zinc, silver, osmiridium and tungsten which has ton certain copper products will be imported free lowered the income of producers and in one case from duty, but where the price is less than £A285 has been sufficiently severe to force the cessation per ton the duty will increase by £1 per ton for of mining operations. There were increases in each £1 by which the determined price falls below the recorded production of cadmium, cobalt this level. This protection is supplemented by oxide, copper, gold, lead, silver, tin, zinc, dolomite, a bounty of £45 pel' ton on copper sold on the limestone, ochre, pebbles, silica and coal but there local market and this will be decreased by £1 per was a faU in the production of iron oxide, ton for each £1 the price of copper exceeds the osmiridium, pyrite, scheelite, sulphur, wolfram, equivalent of £A285. Payment of the bounty manganese dioxide, zinc sulphate, kaolin and red is subject to a profit limitation of 10% on the granite. capital employed. The average number of men employed in the The announcement by the United States in industry was 8,309, as compared with 8,137 for September, 1958, of its decision to impose an the previous year. The increase, which occurred import quota equal to 8070 of the average annual in spite of cessation of scheelite mining and con­ commercial imports of lead and zinc during the sequent reduction of labour force in that field, has period 1953-57 caused wide consternation resulted, as in 1957, chiefly from employment of especially in Australia. International meetings additional labour at metallurgical works. of producers have been held and efforts have been made to influence the United States to review its MINES decision and to secure new markets. Investiga­ Due to uneconomic markets King Island tions have been made with the object of controlling Scheelite (1947) Ltd., operating at Grassy, was exports and production but no specific plan has obliged to cease production in August, 1958. been formulated. The Electrolytic Zinc Company Maintenance operations at the mine are being of Australasia Limited which is the major carried out by the skeleton staff of 28 men retained Tasmanian producer has contracts in India and in employment. is not directly affected by the quota. No new metal mines were opened during the The serious fall in the price of tungsten forced year but additional plant and equipment were the King Island Scheelite Company to cease installed at an East Coast coal mine with a view operations in August last and the mine is now" on to the possible resumption of production. a care and maintenance basis" pending price in­ In an endeavour to reduce costs and increase creases to economic levels. The average Austra­ output of tin-tungsten, a merger has been effected lian price for 1957 fluctuated between 275s. to between the management of the Aberfoyle and 120s. per unit but this declined further during Storeys Creek mines. 1958 and was 67s. 6d. per unit when the mine closed. The price had somewhat improved towards the end of the year to Ills. 3d. per unit METAL PRICES but indications did not favour increases much During the year under review there have been beyond this level in the foreseeable future. several events of importance to Tasmanian pro­ There has been a World surplus of tin which has ducers. These may be referred to, briefly, as resulted in falling prices and, in an endeavour stabilisation of the Australian price of copper, to reduce the amount of available tin and maintain efforts to stabilise the price of lead and zinc at a prices at a satisfactory level, the International (No. 21.) 1959. 4 Tin Council fixed export quotas for the six main The new provisions may ' be summarized as producing countries and has created a buffer follows :- stock to support a fixed minimum price of £730 per ton on the London Metal Exchange. The (a) Provision to grant an Exploration position was aggravated by large tonnages of tin Licence upon the applicant satisfying from the U.S.S.R. being placed on the market and the Department that he has the finan­ at one stage this forced the buffer pool to cease cial and technical resources to enable operations temporarily, resulting in an immediate the investigation of a large area price drop of £90 per ton. There have been some using modern airborne and ground restrictions on the import of Russian tin although prospecting techniques. A rental of there has been no actual agreement by that lOs. per square mile for the first country with the International Tin Council. The twenty-five square miles and one London price has averaged slightly above £750 shilling per square mile thereafter per ton. has been fixed. The Australian price of tin is based on the (b) Special Prospector's Licences have been Singapore price and has averaged £A1035 per ton limited to twenty-five square miles and during 1958. Immediately the sudden fall in the a rental of ten shillings pel' square price of tin was reported the Government made mile is payable. representations to the Commonwealth for the (c) Rent on mineral leas.es other than payment of a bounty to guarantee a minimum alluvial minerals has been increased price to producers but as the world market price to lOs. per acre per annum and, in the immediately recovered no action was taken. case of coal, oil, and stone leases to A tabulation of average annual prices of the 5s. per acre per annum. principal minerals has been included in this (d) The expenditure covenant under leases report. has been repealed and a labour covenant substituted. Leases will now EXPLORATION require the holder to employ one man Mining activity in the State continues to be for each ten acres or part thereof in characterised by extensive policies of exploration the case of mineral leases and stone and investigation of the mineral resources by leases, and one man for each 80 acres companies such as Mt. Lyell Mining and Railway or part thereof in the case of coal and Co. Ltd., the Electrolytic Zinc Company of oil leases. Employment must be for AustralasIa Limited and Rio Tinto Australian forty hours per week unless an exemp­ Exploration Pty. Ltd. Large areas of land in the tion is obtained, except in the case of west, north-west, south-west and east have been stone leases where employment of each held under Special Prospectors' Licences and man for an aggregate of three months investigational work by ground parties and air­ in each lease year will be regarded borne geophysical instruments has contributed as satisfying the labour covenant.
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