BGD—Over From Gold

To Timber

FN the year ended May 31, 1954, L the profits of Bulolo Gold Dredging Ltd. (which began redging the Bulolo flats, a few niles from Wau, soon after New Juinea Goldfields was formed) rere 992,600 US dollars. The profit 3r the previous year was 2i ullion dollars; and that for the urrent year (1955) is expected to e over 700,000 dollars. This Co. has eldom earned less than 100 per ent. on its subscribed capital; but ;s once exciting returns are now thing of the past.

For some years, BGD had eight redges in operation; but this num er has been slowly reduced, as the oldbearmg flats are worked out.

No. 2 dredge has been closed down; No. 4 will cease at the end of 1955; and the last two (Nos. 5 and 7) will go on until 1959.

Meanwhile, in partnership with the Australian Government, BGD is increasingly turning its attentention to the exploitation of the magnificent forests of Hoop and Klinki pine which clothe the ranges around the Bulolo Valley. The timber had little value until the war; _but then the opening of the Wau-Lae military road made it possible to deliver the pine at the sea-coast, and the whole picture changed after the war. The Australian Government (then Socialist) was reluctant to allow private enter-

prise into the forests; but BGD got over that by accepting the Govern ment as the major but inactive partner in Commonwealth-N e w lnto ltS second year ot . , lu 1 ? ot ? nd 111I 11 the exploitation of the pine forests Bon^ n . za that the Bulol ° gold-bearing flats provided over man y years, but it should be a g°°d investment, nonetheless.