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PRIMARY PRODUCTION

details of their membership, share capital, deposits and reserve funds will be found in Appendix V.

MINING

Iron ore, wolframite and graphite are mined underground, and kaolin, feldspar and quartz by opencast methods. Iron ore is ex- ported to Japan, wolframite to the United States, graphite to the United Kingdom, United States, Japan and other countries, and kaolin to Japan, Taiwan and the Philippines. Ceramic and enamel- ware factories consume all locally produced feldspar and quartz, while about one-fourth of the kaolin mined is used in local rubber factories.

During 1963, iron ore mined at Ma On Shan was treated in a dressing plant near the waterfront with a daily capacity of 800 tons of crude ore. Concentrates were transported by barge to ocean- going ships. A second dressing plant, installed in 1960,- treated low-grade ore formerly considered uneconomic, the recovered ore then being processed in the main dressing plant. An access tunnel of about 7,200 feet in length connecting the main dressing plant with the underground workings, was completed in September. An eight-ton trolley locomotive is used to transport ore in the tunnel.

There was little interest in wolframite as the market price re- mained low and only one mine at Needle Hill was in production during the year. Prospectors for iron ore, graphite and kaolin made no discoveries of any economic importance.

The ownership and control of all minerals is vested in the Crown under the Mining Ordinance, 1954. The Commissioner of Mines is empowered to issue prospecting and mining licences and the land officer to issue mining leases. Prospecting licences are valid for periods of six months, renewable up to a maximum of five years. Mining licences are valid for periods of six months, renewable up to a maximum of five years, but may be extended further with the consent of the Governor. Mining leases are granted for periods up to a maximum of 21 years. Details of leases and licences in operation are published twice a year in the Government Gazette. At the end of 1963, there were two mining leases, 14 mining licences and two prospecting licences valid for different areas throughout the territory. They were mainly controlled by indi- viduals or small mining companies.

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