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Aust mining firms show interest in Vatukoula
Wednesday February 07, 2007


At least two mining companies that are currently prospecting in Fiji could be likely contenders to buy all or part of the Australian mining company Emperor Mines operation in Fiji.

Australian newspaper, the Sydney Morning Herald quotes two Australian companies, Geopacific Resources and Redbank Mines as showing some interest in the EGM assets at Vatukoula.

SMH says Emperor is looking to quit Fiji for good after revealing that the closure of its Vatukoula goldmine will force it to report a half-year loss of more than $200 million.

The report said that the troubled Brisbane company has been forced to rely on a $US15 million short-term financing facility from ANZ Banking while it restructures its operations.

"It has the option of drawing down a second tranche of about $US20 million, but it is believed it would rather sell all of its Fijian assets as a package to avoid taking on more debt," the report said.

The two Australian companies that are currently prospecting in Fiji include Geopacific Resources and Redbank Mines.

When asked whether Geopacific Resources would be interested in buying out Vatukoula, managing director Ian Pringle declined to comment.

Geopacific Resources is currently drilling at Togo at Nadi South and the Natalua prospect at Vuda for copper and gold prospects.

Pringle had earlier told Sydney Morning Herald (SMH) that his company would be interested in some of Emperor's infrastructure in Fiji, but not necessarily the projects.

Pringle however said the prospects at Togo and at Vuda have drilling underway.

Asked whether there could be any likely employment opportunities at Vuda and Togo for the 1730 Vatukoula mine workers who have lost their jobs, Pringle said they are looking to hire a small number of mine employees to help with their expanding exploration activities.

A questionnaire sent to Redbanks has remained unanswered.

Redbank is an independent Australian based mining and exploration company with a focus on copper and gold has assets that includes the Redbank Copper Project located in the Northern Territory in Australia and the Mt Kasi Gold Project located in Fiji. Both projects are 100 per cent owned by the company.

Redbank Mines chief executive Jerome Vitale had earlier told the SMH that the exploration properties could be of some interest, but not the Vatukoula mine.

A third company Golden Rim Resources Ltd., formerly Alcaston Mining NL (Alcaston), is an active exploration company with projects in Fiji, Vanuatu and Australia.

But the company's executive director Gilbert Rodgers says the company is not interested in bidding for the Vatukoula Gold Mine.

In Fiji, it has the Sabeto project, which sits to the north and directly along strike from the Tuvatu gold project and is prospective for similar high-grade, epithermal gold mineralization.

Emperor's chief executive Brad Gordon recently told the Australian Stock Exchange that the company was "actively considering divestment of the Fiji assets which also include the Tuvatu gold deposit and regional exploration assets in Fiji".

"The assets at Vatukoula may still represent some residual value to the group and provided that the cmpaany is able to properly and lawfully deal with those assets, options for realising that value could be reasonably pursued," he said.

He said the operations of the group in Fiji have been complicated by the political events in Fiji and by actions taken by the Fiji military in occupying parts of the Vatukoula mine site from the weekend of Jan 7 and 8."

In its December quarterly report released on Friday, Emperor revealed cash costs at the remote Tolukuma were an unprofitable $US793 an ounce. The cost of producing gold at Vatukoula was even higher, at $US978 an ounce.

For its part, the Fiji government had talked about nationalising the mine but no comments could be obtained from the interim prime minister's office on the issue. Parmesh Chand, advisor in the the PM's office had earlier said that the office would issue a release.

Meanwhile, a Canadian company is in Fiji recruiting some of the former mine workers to work in Canada.



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