Reserves of high-grade quartz gravel, lignite and timber suitable for the production of silicon metal and ferrosilicon on large scale occur within 40 miles of Bluff Harbour. Undeveloped hydroelectric power resources on the Clutha River are located within 50 miles of the most promising quartz gravel deposits while opencastable lignite, potentially suitable for electric power production, occurs in the same locality as the quartz gravels. A preliminary study of production economics indicates that the commercial feasibility ofsilicon/ferro-silicon production would depend mainly on the cost of electric power, total capital cost of plant, and the market value of the products. The proximity of Bluff Harbour is advantageous for the export of products.