Page 24 - IB March 2021

Mining Mining
CAN MINING DIG FIJI OUT

OF COVID HOLE?

By Dionisia Tabureguci

Fiji’s minerals sector is tipped to lead its post-COVID eco-
nomic recovery, with gold production expected to strengthen
later this year and interest in gold prospecting on the rise.
“The mining sector has been quite resilient throughout this
pandemic because of the favourable economic conditions that
the sector is operating in. For example, we’ve received a lot
of interest in gold exploration because the gold price is very
high,” said Acting Director of Mines, Raymond Mohammed
earlier this month.
“For mining companies that are already operating in Fiji,
they’ve been drawing up recruitment schedules and also Construction of the new tailings dam at Vatukoula Photo: Supplied
ramping up production within the mine itself because of this
very favourable economic conditions that’s presented to these demic has crippled most major industries.
mining operators to be able to further investment in the sec- A few though have been spared, among them gold, which,
tor. So in terms of economic recovery, the Department looks as a major commodity in the international markets, has
at the sector as very important in this difficult time that the been trading at historic highs into this year, averaging over
country is faced with.” US$1,900 per ounce this year.
Although Fiji doesn’t rival Papua New Guinea or New Cale- The boom, driven by investors looking to gold as a safe
donia as a Pacific minerals powerhouse, the country does see investment in uncertain economic times, is now Fiji’s unlikely
potential in hosting mineable resources, such as gold, silver economic driver.
and bauxite. Production and exports of the country’s minerals sector had
Its only gold producer, Vatukoula Gold Mines in western fallen over the years, with its total contribution to GDP now
Viti Levu, has been in operation for some 86 years, changing hovering at around two percent, according to Mohammed.
ownership a few times but consistently in production. “The sector has the potential to be able to support the
Nearby Tuvatu in Nadi is on track to begin gold production government in economic recovery,” he said.
soon. Its operator, Canadian junior miner Lion One Metals, has “We’re working closely with companies with active mining
reported large scale alkaline gold systems in its tenements. leases to be able to explore any new business development
Mt Kasi in Vanua Levu, another dormant gold prospect, was opportunities and also to ramp up productions given the
Fiji’s second operating mine before it had to close in 1998 favourable economic conditions. So we’re proving also a lot of
when its then leaseholder’s financial hardship coincided with advice and consultations with them.”
slump in gold prices. The Mineral Resources Department will soon hold public
Now the subject of renewed interest, Mt Kasi attracted awareness events on the new prospects and state of the sec-
seven applications when the Fijian Government called for tor.
Expressions of Interest into its reopening last August.
Pending the resolution of redress issues in the application State of projects:
submission process, the reopening of Mt Kasi is likely soon. Vatukoula
“The state of play for the minerals sector at this point in Vatukoula Gold Mines Ltd is maximising returns on the
time is we have 31 Minerals Prospecting Licenses. This isn’t resources that it has by complementing production from its
confined only to gold exploration but other minerals as well underground mine with reprocessing of its tailings dam.
- in bauxite, copper, iron sand and also polymetallic core. VGL’s 21-year mining lease expires in 2025.
These 31 licenses have been issued for all of Fiji and they’re
mostly foreign companies who come in to invest in the Fiji Tuvatu
minerals sector,” said Mohammed. Huge gold potential in the Navilawa Caldera, which Lion
“Apart from that, we have eight active mining leases. Late One has now leased for mining. Projected to be the next
last month, we awarded two new Prospecting Licenses for Vatukoula.
gold - for Nabila in Nadi and for Viani in Cakaudrove. We are
currently assessing another five applications: one for Mt Kasi, Mt Kasi gold project
one for Sabeto, one for Vuda, one for Rakiraki and one for Seven applications were received for its reopening. One
Nakauvadra. The companies behind them are two China-based unsuccessful bidder sought redress, which is being looked into
companies and one Australian company,” Mohammed added. by the tender assessment committee. The bid was won by the
Globally, the economic fallout from the coronavirus pan- Chinese-owned Vatukoula Gold Mines.

24 Islands Business, March 2021