4. Attempts to Start an Iron Industry.

Various forms of iron and oxides are found in the Collingwood area and from earliest days of European settlement there were suggestions that an iron industry could be an important development in the area. The first mention of any such step being taken is found in the Report on the Golden Bay District presented to the Nelson Provincial Council in 1874 when Warden Frank Guiness stated: "The Parapara Mining Company which is in the process of being formed, has good prospects before it.That iron-ore of a superior quality exists in this place is undoubted, and that it can be profitably worked appears very probable. That coal, of a superior kind, is largely deposited in the district, is proved, and with an ample supply of it the iron mines must prove a source of great wealth, which if once brought into operation will cause a great increase in our population and revenue."

The Handbook of New Zealand Mines, 1887, gives later details: "A company known as the Parapara Iron and Coal Company Ltd was organised in Melbourne in order to smelt iron-ore. The smelting was to take place at Ferntown where there were coal outcrops, and whither the iron-ore was to be taken in barges. Numerous works were undertaken at Ferntown, barges built, and so on, but as the capital of the company was inadequate for the work in hand, nothing materialised, and the company went into liquidation."

The Parapara company mentioned took over the Ferntown coalmine, and commenced the big development work at Ferntown with the buildings, tramline, and the wharf at the Ferntown township itself right beside the mudflat. The undertakings there are described in an obituary concerning the late M. M. Webster published in the Colonist of January 13, 1916. It states page 10that he worked for W. M. Stanton as a storekeeper on the Collingwood goldfields and later participated in a number of mining speculations, starting with an interest in the Collingwood Coal Mining Company, of which he was secretary. Associated with a Melbourne party in the late seventies, he took part in an endeavour to utilise the immense iron ore deposits at Parapara. A company was floated and absorbed the Collingwood Coal Company and upwards of 17,000 pounds ($34,000) was spent on preliminary works, including an iron tramway, foundation for blast furnace, etc. Owing to the lowest estimates from Scotch manufacturers for a blast furnace being over double the estimate of the engineer, those concerned in the venture became of opinion that the capital was not sufficient, and the company was voluntarily wound up."

Late in 1875 Charles Lewis surveyed the Ferntown township, and the coal tramline through the middle of the village as well as the foreshore near the wharf was shown as belonging to the Parapara Iron Company. It was believed that all the required minerals for the industry were readily available there. The company was wound up in 1877.

J. MacIntosh Bell in Parapara Subdivision states that the next attempt to smelt the Parapara iron-ore was made by Howard Keep and John Chambers, of Auckland, who took up a 640 acre (259 ha) lease, and held it for 10 years when it became the property of the Bank of New Zealand. The Bank, in order to hold the ground, constructed a road and stacked a little ore.

From time to time over the next few years the prospects of the iron industry received a good deal of publicity and in 1886 a most optimistic report stated that a man named Russell was interested in the project. Kerr and Adams preceeded to take up leases over 3000 acres (1212 ha) of land with the idea of being able to transfer this to an English company which was to be formed to work both iron and coal deposits in the area. Part of the scheme was to build a deep water port. By the end of 1888 the iron and coal lease held by them was still untouched and John Kerr, in his bluff style, said that he would finance the works himself if no one else would. No immediate response was forthcoming.

A new development took place in 1891 when the Onehunga Iron Smelting Company of Onehunga took 300 tons of iron ore from the Washbourn Brothers lease at the Parapara as a trial shipment. Squires & Co. contracted to get out and cart 50 tons of ore per week until the requisite amount was obtained. As well coke and coal from Ferntown was procured so as to prove all the local materials which would be involved in a local smelting industry. Small craft were chartered to carry cargoes to Nelson where these were transferred to the vessel bound for Onehunga, although it appears that some of the small shipments from Ferntown were taken directly to Onehunga. One can only conclude that the prospects were bright for the establishment of an iron industry as in the following year the company was applying for prospecting rights for limestone over an area of 600 acres (242 ha) and was negotiating with J. Squire for the purchase of part of his property. In June 1893 the men working at the Onehunga Iron Works lease were all discharged.

As a further attempt to raise interest in the iron deposits a ton of iron ore, limestone, and haematite were shipped to Wellington, enroute to London. Later that year a Notice of Application for Mineral Lease for 141 acres (57 ha) at Onekaka, Parapara, was in the name of the New Zealand Iron Mining and Smelting Co. Ltd. This was part of the lease previously held by Adams and Kerr, now reduced in area. The company applied for a further area of 598 acres (242 ha) at Parapara. The scheme involved the floatingof a company with 250,000 pounds ($500,000) capital, which would eventually employ 500 men. Shortly afterwards an Application for Mineral Licence was applied for by the Auckland Founders Syndicate of the Golden Bay and Great Pacific Forge, Steel, Iron Works, and Collieries Co. Ltd. for 200 acres (81 ha) at Onekaka. The advertised capital of 500,000 pounds ($1,000,000) had been increased to one million pounds (two million dollars) when application was made for a further 141 acres (57 ha) in April, 1897.

There were many advocates for the development of the iron industry and one finds that C. E. Buxton, C.E., was giving public lectures on the subject in 1895. A few years later Joseph Taylor was advocating the development of local resources and lectured both locally and in Wellington on "Our Coming Iron Industry." However, the most notable figure was H. P. Wasbourn who, with his great enthusiasm for the utilization of the local mineral resources, was a prolific writer who readily entered into correspondence with either friend or foe in his crusade. Politicians, local bodies, and all interested parties were kept well informed. Some of his newspaper correspondence indicates his untiring efforts to promote local industry.

Again quoting from J. MacIntosh Bell we find that Alfred J. Cadman obtained a lease of 1000 acres (404 ha) of iron-bearing country, and in 1903 a claim of 920 acres (372 ha) was staked, this including the 640 acres (259 ha) of the original Parapara Iron and Coal Company. On the death of Sir A. J. Cadman in 1904, D. Berry of New Plymouth took charge of the iron property, and an effort was made by J. H. Whiteford, in London, to obtain capital, but without success – apparently because of the paucity of necessary data relative to the iron deposit. In the early part of 1907 the Parapara iron and Coal Syndicate was formed and acquired the properties in the Cadman lease, also purchasing the ground held by the Washbourns to the south of that property.

The New Zealand Mining Handbook, 1906, states: "A lease of 920 acres (372 ha) at the Parapara has been secured by the Public Trustee, as trustee and executor of the estate of Sir Alfred Cadman, and the formation of a company in England with a view to working the iron deposits is stated to be practically assured. This lease does not by any means exhaust the iron-deposits of the Parapara, and in the event of the Cadman company being successful no doubt other leases will be taken up and worked …"

In 1906 and 1907 further developments were taking place and the prospectus of the Parapara Iron Ore Company was being circulated with the idea of promoting a company with a capital of 165,000 pounds ($330,000). There was to be a tramline leading for the two miles (3.2 km) to a wharf site at Tukurua Point while an expert was employed to choose a site for furnaces page 12

Visit of the Governor, Lord Ranfurly and Party 1904
"Early in 1904 the Governor, Lord Ranfurly, and his party, including the Prime Minister, R. J. Seddon, arrived at Collingwood in the Government Steamer, Hinemoa. The official party was ferried ashore in the lifeboat – the harbour being unsuitable for a boat of that size and a Recption Committee was waiting on the wharf. Everybody then climbed into a 'Cavalcade of Conveyances' and the procession set off along the beach to Parapara." After lunch an inspection was made of the paintworks and of the iron deposits. The photo taken by F. Tyree shows A. J. Washbourn at the extreme left, H. P. Washbourn third from the left with a lump of iron ore, R. J. Seddon, Lord Ranfurly and party.
– (Nelson Provincial Museum)

page 13

Iron Ore Quarry.

The Coke Ovens – (Nelson Prov. Museum)

page 14and other plant. There was some difficulty over leases as in 1907 various applications were made on behalf of companies and individuals. The 56 acre (22.6 ha) mining privilege originally held by Washbourn Brothers for their paint industry was applied for by several interested parties. One of the difficulties involved was to break the 40 year lease held by the earlier mining company.

Meanwhile a Christchurch syndicate was manning the Cadman and Washbourn leases. A temporary wharf was erected at Tukurua Point 300 feet (91 m) long with 15 feet (4.5 m) of water at full tide. Railway formation was being constructed from the beach to the iron face at Washbourn's. Twenty-five men were being employed on the development work. (The wharf was destroyed by a storm after having had little use.)

In 1908, Dr Bell, in a lecture at Rockville after a trip overseas, stated that the iron ore deposits at Parapara were the largest in the world. However, even this expert knowledge was insufficient to get an industry started. Men were still employed on the leases and further attempts were being made to float a company. In November, 1908, Professor Park made an exhaustive inspection of the mining properties held by the Parapara Iron Ore Company as it was still envisaged that a substantial industry would be started. A further development was the investigation into the possibilities of harnessing Boulder Lake to secure electric power to run the plant. Interest continued to be maintained in the project but little headway was made.

During the period of great optimism about the iron industry prospects F. G. Gibbs of Nelson bought large areas of pakihi land in the vicinity. A letter from him to one of his associates, although not dated, gives a good indication of conditions at the time. He states: "After leaving Gaukrodger's Hotel at Waitapu (Globe J.N.) you cross the Takaka river by a bridge and go over a low hill. The road is fairly level then till you have crossed the Parawhakaoho near the school (Puramahoi. J.N.). Our land begins about another quarter of a mile past the river which was not bridged when I was last there. There is a very shaky footbridge in the paddock to the right (Parawhakaoho bridge built 1909. J.N.). You can recognise Macartney's small section No. 81 because an old house stands on it close to the road. Our land bounds his section on two sides. The road now ascends steeply (Macartney's Hill. J.N.) through our section No. 1, and then runs through our sections 11 and 12 for about half a mile (0.8 km). The road goes down a siding, with Skilton's and then passes Arthur Washbourn's section 94. His little cottage stands back among the trees on a rise about 300 yards (274 m) from the road. The Onekaka crossing is rather a nasty one (not bridged till 1913. J.N.) but your passengers can cross by the plank bridge on the left. The road undulates past Will Squires sections. Our sections all along here, can be seen from the road at no great distance. After passing young Scadden's house on the left you will find the road branching just in front of old Scadden's house. The road on the right leads down to the beach. You must take the left road which is now completed nearly to Para Para. When near the top of the hill look out for a bridle track leading away to the left. You may have to leave your car here and follow the bridle track over to Para Para. Better ask at Scaddens."