By Dionisia Tabureguci
Fiji’s minerals sector is tipped to lead its post-COVID economic 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 ramping up production within the mine itself because of this very favourable economic conditions that’s presented to these mining operators to be able to further investment in the sector. So in terms of economic recovery, the Department looks at the sector as very important in this difficult times that the country is faced with.”
Although Fiji doesn’t rival Papua New Guinea or New Caledonia as a Pacific minerals powerhouse, the country does see potential in hosting mineable resources, such as gold, silver and bauxite.
Its only gold producer, Vatukoula Gold Mines in Western Viti Levu, has been in operation for some 86 years, changing ownership a few times but consistently in production.
Nearby Tuvatu in Nadi is on track to begin gold production soon. Its operator, Canadian junior miner Lion One Metals, has reported large scale alkaline gold systems in its tenements.
Mt Kasi in Vanua Levu, another dormant gold potential, was Fiji’s second operating mine before it had to close in 1998 when its then leaseholder’s financial hardship coincided with slump in gold prices.
Now the subject of renewed interest, Mt Kasi attracted seven applications when the Fijian Government called for Expressions of Interest into its reopening last August.
Pending the resolution of redress issues in the application submission process, the reopening of Mt Kasi is likely soon.
“The state of play for the minerals sector at this point in time is we have 31 Minerals Prospecting Licenses. This isn’t confined only to gold exploration but other minerals as well – in bauxite, copper, iron sand and also polymetallic core. These 31 licenses have been issued for all of Fiji and they’re mostly foreign companies who come in to invest in the Fiji minerals sector,” said Mohammed.
“Apart from that, we have eight active mining leases. Late last month, we awarded two new Prospecting Licenses for gold – for Nabila in Nadi and for Viani in Cakaudrove. We are currently assessing another five applications: one for Mt Kasi, one for Sabeto, one for Vuda, one for Rakiraki and one for Nakauvadra. The companies behind then are two China-based companies and one Australian company,” Mohammed added.
Globally, the economic crunch fallout from the coronavirus pandemic has crippled most major industries.
A few though have been spared, among them gold, which, as a major commodity in the international markets, has been trading at historic highs late last year into this year, averaging over US$1,900 per ounce this year.
The boom, driven by investors looking to gold as a safe investment haven in uncertain economic times, is now Fiji’s unlikely economic driver.
Production and exports of the country’s minerals sector had fallen over the years, with its total contribution to GDP now hovering at around two percent, according to Mohammed.
“The sector has the potential to be able to support the government in economic recovery,” he said.
“We’re working closely with companies with active mining leases to be able to explore any new business development opportunities and also to ramp up productions given the favourable economic conditions. So we’re proving also a lot of advice and consultations with them.”
The Mineral Resources Department will soon hold public awareness events on the new prospects and state of the sector.
State of projects:
Vatukoula
Vatukoula Gold Mines Ltd is maximising returns on the resources that it has by complementing production from its underground mine with reprocessing of its tailings dam.
VGL’s 21-year mining lease expires in 2025.
Tuvatu
Huge gold potential in the Navilawa Caldera, which Lion One has now leased for mining. Projected to be the next Vatukoula.
Mt Kasi gold project
Seven applications were received for its reopening. One unsuccessful bidder sought redress, which is being looked into by the tender assessment committee. The bid was won by the Chinese-owned Vatukoula Gold Mines.
Bauxite
Aurum Exploration from China was awarded two bauxite mining leases and 8 bauxite exploration licenses. Fiji’s last bauxite shipment was in 2018.
Status of its two bauxite mines:
Nawailevu, Bua: was high grade but has been mined out and is now in mine rehabilitation phase with 260,000 pine trees planted.
Naibulu, Dreketi: Low grade bauxite. Need beneficiation before shipping. The company is working on trying to improve the yield via its R&D and also work on the ground.
Namosi copper/gold
Is in early stages of visibility studies.
The company is doing a number of studies on the exploration data that it has generated, in order to determine the viability of the project.
Ironsand mine, Ba Delta
Mining lease held by Amex Resources Ltd, working in the Ba Delta. The company is faced with mechanical challenges and is working on those in order to ramp up production by the middle of this year.
