FIJI’S MINING SECTOR
Challenges and Opportunities
George Niumataiwalu
Vice Chair, Mining & Quarrying Council
Fiji Employers Federation
Reality: Mining is a
high risk industry
Why Fiji’s Full Mining Potential
has not been realised sooner?




Long Gestation Period
Volatile Commodities markets
Deficient regulatory framework
Highly technical and complex variables
involved
 Tainted by past practices
 Lack of political will
Why Now?
 Commodities markets at all time highs
 Mining and exploration companies are
willing to invest aggressively again
 Shortage of physical metal supply due
to lack of producing mines, particularly
gold
 Medium to long term metal forecasts,
particularly for gold and copper, look
very optimistic
Gold Price Trends, 2000-2010
Source: www.kitco.com
Copper price trends, 2000-2010
Source: www.kitco.com
Location of Key Possible & Existing Mining Projects
Map source: www.fijislandscapes.com
Nawailevu, Bauxite
Mt. Kasi, Au
Vatukoula, Au-Ag
Tuvatu, Au
Faddy’s, Au
Wainivesi Zn -Au
Namosi, Cu-Au
Fiji Mine Production Possibilities Schedule
Projects, excl.
Iron Sands,
Manganese,
others
Possible Yr of Mine Life,
Production
years
Gross
Revenue at
Current
Prices, FJD
million
30-40
$1,021
Namosi
2014/15
Mt. Kasi
2013/14
7-10
$120
Vatukoula
Wainivesi
Existing
2010
10+
10+
$240
$94
2010
5+
2013
10+
2014
7-10
Total at Full Production
$40
$48
$120
$1,794
Nawailevu
Tuvatu
Faddy’s
Mining Sector Expansion: Implications for Total
GDP
Projected Mining Sector Contribution to Total
GDP, $ millions
Nam osi P roject, $ m illions
Mining Secto r Expansion less Nam osi, $
m illions
GDP a t current prices (IMF), FJD m illions
9,000
8,000
7,000
Mining Sector
At 16+% GDP
6,000
`
5,000
4,000
3,000
Mining Sector
At <1% GDP
2,000
1,000
0
2010
2011
2012
2013
2014
2015
FIJI ECONOMY NEEDS A BOOST
THAT ONLY THE MINING SECTOR
HAS THE POTENTIAL TO DELIVER
OVER THE LONG TERM!
NO OTHER SECTOR CAN
DELIVER AN INCREASE
IN TOTAL GDP BY AT LEAST 16%+
IN THE NEXT 5-10 YEARS, IF EVER
Namosi Project: the Key
 Only the Namosi project can catapult
Fiji to a different tier in developing
countries; project cost is >$2.0 Billion,
and annual revenues of >$1.0 Billion
per annum for 30-40 years!!
 Newcrest is an ideal company, growing
to become even larger! With market
cap of approx. USD$30 Billion
 Size of Namosi project will challenge all
stakeholders!
Challenges for the Sector
 Get the Policy and regulatory environment right!
Learn from PNG!
 Landowner issues are important, but should be
placed within an appropriate policy and regulatory
framework that is fair and transparent.
 Get projects to Feasibility Study stage soonest!
 Focus on outcomes, but be aware of trade-offs
 Govt has to work with companies and stakeholders
to realise this potential - partnership approach!
 Strategic opportunity exists - time to act!
Landowner issues…critical in Melanesia for ALL stakeholders!
Source: www.nicholsoncartoons.com.au
Opportunities for the Sector
 Kick start sustained economic growth for the
long term
 Economic multiplier possibly > 3x
 Creation of supporting industries and
commerce
 Deepening of the Fijian Economy due to
sectoral synergies
 Possibility of Mining Contribution to national
power requirements, eg geothermal energy
 Further development of regional social and
physical infrastructure
Concluding remarks…
 Mining sectoral expansion and growth is
critical to Fiji’s long term economic future
 Mining sectoral growth though must be
managed responsibly by all stakeholders
 Just as there are many challenges facing the
mining sector in Fiji, there are also many
opportunities for sustained wealth creation
“The only way to discover the limits of the possible is to go
beyond them into the impossible.” - Arthur C Clarke
“When written in Chinese the word "crisis" is composed of two
characters - one represents danger and the other represents
opportunity.” ~ John F. Kennedy, address, 12 April 1959
End