The transition to producing gold concentrates at Vatukoula is being identified as a significant factor in the decline of Fiji’s overall gold output. According to the latest monthly economic review released by the Reserve Bank of Fiji (RBF), gold ore production experienced a sharp contraction of 28.2 percent in December. This decline was prominently influenced by Vatukoula Gold Mines Ltd (VGML), which saw a staggering decrease of 62.4 percent. In contrast, Tuvatu Gold Mines managed improvements, contributing a 23.1 percent increase.
The RBF noted that the lower output at VGML is reflective of its recent shift towards gold concentrates, which have amounted to a total of 12,400 ounces this year. In a statement addressing these changes, VGML clarified that the switch to producing gold concentrates has made it possible to preserve the gold content in their final products, ultimately leading to a higher overall gold production.
VGML’s vice president, Ian He, emphasized the importance of understanding the production process. He explained that the focus is now on the gold content in the concentrates rather than solely on the gold dore, which is the traditional method. Due to the elimination of the smelting process for concentrates, the company has observed an increase in gold production by at least 12 to 13 percent, as losses related to smelting have been avoided. This change has not only heightened their gold production but is also expected to enhance revenue through increased tax payments and export duties based on the contained gold in both concentrates and dore.
Despite facing challenges due to insufficient investment in infrastructure and the depletion of accessible high-grade deposits, VGML is taking proactive steps toward modernization. The mine, which has been operational for over 90 years, is currently undergoing a significant upgrade with a $200 million investment commitment from its new major shareholder, Shandong Zhaojing Group Company Limited, one of China’s leading mining firms.
This strategic pivot towards concentrates may provide a new pathway for the mine’s long-term sustainability and profitability, positioning VGML to rebound from recent setbacks while contributing positively to Fiji’s economic landscape.
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