ENG-1957 — Page 154

PRIMARY PRODUCTION AND MARKETING

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Department in 1955, its aims are to encourage members to save and to utilize savings for small individual loans. The other function of this society is the purchase of consumer goods in bulk for resale to members. Figures of the membership and finances of Societies will be found at Appendix XII.

MINING

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There is mining of iron, lead, wolfram and graphite by underground methods, whilst kaolin clay, quartz and feldspar are worked by opencast methods. Iron ore and kaolin are exported to Japan, lead ore to Europe, and wolfram and graphite to the United Kingdom and United States. Kaolin clay is also used locally by manufacturers of synthetic rubber, whilst quartz and feldspar are solely produced for local con- sumption, principally by the enamelware, ceramic and glass- making industries.

All mining leases and licences and prospecting licences are for the New Territories, i.e., the mainland and the islands of Lantao, Chek Lap Kok, West Brother, Ma Wan and Tsing Yi, and operations are mainly controlled by in- dividuals or by small Chinese mining companies.

At the Ma On Shan iron mine the transition from opencast to underground operation was completed early in the year. The 700-ton-a-day crude ore capacity dressing plant at this mine, the construction of which was completed in 1954, is the only processing plant in the Colony involving the use of heavy machinery.

Mining operations generally were adversely affected by unusually heavy rains in May, and by a severe typhoon in September. The continued low market price for wolfram dis- couraged interest in the mining of this mineral.

During the year prospecting took place for wolfram, graphite and beryl, but there were no discoveries of economic importance.