re: abc just said-ronsteib MINING - FIJI INDUSTRY OVERVIEW
For many years the Vatukoula gold mine has been the only operating mine in Fiji however two possible mining ventures are now on the horizon.
The government has granted a mining lease to Australian gold miner Pacific Islands Gold NL to exploit gold deposits in Mount Kasi at Tuvatu in Savusavu by reopening an open cut mine that has lain dormant for 50 years.
It is planned that the Mount Kasi mine will start producing in December 1995 after a A$5.9 million 500,000 tonnes a year plant comes on stream. This plant is part of A$9.7 million total capital expenditure needed to resurrect the mine. To be operated by Mount Kasi Ltd, a subsidiary of Pacific Island Gold of Australia, this will be Fiji's first new mining operation in 25 years. Projected export earnings are approximately $13 million per annum.
The government is also considering another substantial mining venture. In conjunction with Placer Pacific Ltd of Sydney, it is assessing the prospects for a possible major copper mining project at Namosi near Suva. About A$22 million has been spent on exploration work and it is anticipated that if the project proves viable the capital cost will be over A$1billion and the mine will generate exports of around A$400 million a year. Placer Pacific is to resume exploration work following settlement of a dispute with the Fijian government over tax. Work on the 1.5 thousand million dollar project stopped in April 1995. The project was shelved when Placer asked for a 3.5 per cent export tax to be waived and for reductions in the normal rate of corporate tax of 35 per cent.
The tax questions have now been resolved after talks between Placer representatives and Fiji's Trade and Investment Minister, Jim Ah Koy, and Finance Minister, Berenado Vunibobo. The ministers say Placer will pay the normal corporate tax. If it goes ahead, this project will offer good opportunities for Australian suppliers.
All mining systems are imported, only some very basic mechanical equipment and hardware being fabricated locally.
