The Reserve Bank of Fiji (RBF) has provided clarity on the changes in the documentation of Fiji’s gold production following Vatukoula Gold Mines Limited (VGML) shifting its focus from gold ore to gold concentrates. The RBF stated that the figures for these two products are now reported separately, and this does not represent the total gold production in Fiji.
Last week, VGML responded to the misconception that its gold production had declined significantly due to the transition to gold concentrates. Ian He, the vice president of VGML, asserted that gold production in Vatukoula is actually on the rise for the year 2025, contradicting reports that suggested a drop of up to 60%.
In its December Economic Review, the RBF had indicated a decline in gold ore production by 28.2%, attributed mainly to a notable 62.4% decrease at VGML. However, this was somewhat balanced by a 23.1% increase from Tuvatu Gold Mines. RBF Governor Ariff Ali elucidated that the report specifically referred to gold ore production, not the totality of gold production.
Historically, when both VGML and Tuvatu Gold Mines produced gold in ore form, the RBF consolidated these numbers into a single report of gold production. This methodology has changed now that VGML has pivoted to producing gold concentrates, which represent a different stage in the processing of gold and cannot be aggregated with gold ore figures for accurate economic analysis.
The latest Economic Review noted that VGML has successfully produced 12,400 ounces of gold concentrates for the year thus far. Addressing media reports, Ian He emphasized that despite the RBF’s figures highlighting a drop in gold ore production, the actual gold output from the mine has increased, reflecting the final products and not merely the ore used in production.
Ali acknowledged that the broad terminology surrounding Fiji’s gold production in earlier articles may have contributed to the misunderstanding, reaffirming that VGML’s overall gold output, measured in net contained gold, has indeed not declined. The decline cited in the RBF’s review pertains solely to the production of gold ore and should not be interpreted as a reduction in Fiji’s overall gold output.
This situation highlights the importance of accurate reporting in the mining sector, especially as changes in production methods can significantly affect reported statistics. The mining industry in Fiji continues to demonstrate resilience and adaptability, potentially paving the way for a robust gold production future despite transitional challenges.
Leave a comment