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    Fef - Fiji Mining Sector - Challenges Opportunities - George Niumataiwalu

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    Intelligentsiya Hq
    Fiji's mining sector has significant untapped potential but has faced challenges in being realized. The sector is high-risk but commodity prices are now high, providing opportunity. The Namosi copper-gold project could boost Fiji's GDP by over 16% and bring over $1 billion in annual revenues for 30-40 years. However, challenges include improving policies and regulations, addressing landowner issues, and progressing projects. If managed responsibly and as a partnership between government, companies, and stakeholders, mining sector growth could drive long-term economic growth and development for Fiji.

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    Fef - Fiji Mining Sector - Challenges Opportunities - George Niumataiwalu

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    Intelligentsiya Hq
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    Fiji's mining sector has significant untapped potential but has faced challenges in being realized. The sector is high-risk but commodity prices are now high, providing opportunity. The Namosi copper-gold project could boost Fiji's GDP by over 16% and bring over $1 billion in annual revenues for 30-40 years. However, challenges include improving policies and regulations, addressing landowner issues, and progressing projects. If managed responsibly and as a partnership between government, companies, and stakeholders, mining sector growth could drive long-term economic growth and development for Fiji.

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    Fiji's mining sector has significant untapped potential but has faced challenges in being realized. The sector is high-risk but commodity prices are now high, providing opportunity. The Namosi copper-gold project could boost Fiji's GDP by over 16% and bring over $1 billion in annual revenues for 30-40 years. However, challenges include improving policies and regulations, addressing landowner issues, and progressing projects. If managed responsibly and as a partnership between government, companies, and stakeholders, mining sector growth could drive long-term economic growth and development for Fiji.

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    Download as PDF, TXT or read online from Scribd
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    181 views16 pages

    Fef - Fiji Mining Sector - Challenges Opportunities - George Niumataiwalu

    Uploaded by

    Intelligentsiya Hq
    Fiji's mining sector has significant untapped potential but has faced challenges in being realized. The sector is high-risk but commodity prices are now high, providing opportunity. The Namosi copper-gold project could boost Fiji's GDP by over 16% and bring over $1 billion in annual revenues for 30-40 years. However, challenges include improving policies and regulations, addressing landowner issues, and progressing projects. If managed responsibly and as a partnership between government, companies, and stakeholders, mining sector growth could drive long-term economic growth and development for Fiji.

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    of 16

    FIJIS MINING SECTOR

    Challenges and Opportunities


    George Niumataiwalu
    Vice Chair, Mining & Quarrying Council

    Fiji Employers Federation

    Reality: Mining is a high risk industry

    Why Fijis 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 Faddys, Au
    Wainivesi Zn -Au

    Namosi, Cu-Au

    Fiji Mine Production Possibilities Schedule


    Projects, excl. Iron Sands, Manganese, others Namosi Mt. Kasi Vatukoula Wainivesi Possible Yr of Mine Life, Production years Gross Revenue at Current Prices, FJD million 30-40 $1,021 7-10 10+ 10+ $120 $240 $94

    2014/15 2013/14 Existing 2010

    Nawailevu Tuvatu Faddys

    2010 5+ 2013 10+ 2014 7-10 Total at Full Production

    $40 $48 $120 $1,794

    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 6,000 5,000 4,000 3,000 2,000 1,000 0

    Mining Sector At 16+% GDP

    Mining Sector At <1% GDP

    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 issuescritical 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 Fijis 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

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