FIJI GLOBAL NEWS

Beyond the headline

Vatukaloko native Sele Tagivuni has called for a comprehensive review of royalties under Fiji’s Mining Act 1965 and Quarries Act 1939, urging changes to ensure payments flow directly to iTaukei landowning units and better reflect global commodity values. Speaking at a public consultation at the Rakiraki Market Hall yesterday, Tagivuni said the current royalty schedule leaves landowners shortchanged and fails to capture the full value of resources taken from their land.

“The current calculation needs further review,” Tagivuni told the consultation, stressing that payments must reach the correct mataqali or bose vanua regardless of which group is involved. He highlighted a specific omission in the existing schedule: artesian and silica-based water extraction are currently excluded from the royalty schedule, even though water extraction is regulated under other water resource and tax laws. Tagivuni argued this gap allows commercial users to profit without adequate compensation to customary landowners.

Tagivuni also proposed that royalties should be indexed to international commodity pricing rather than being pegged solely to rates at the time of extraction. “If we are talking about maximisation of benefit sharing for the iTaukei landowning units, we must be critical in our understanding of what is actually happening out there,” he said, invoking the equitable benefit-sharing principles of the 2013 Constitution as part of his rationale.

Providing technical context at the same consultation, Mineral Resources technical advisor Dr Apete Soro outlined the present statutory rates for landowning units: royalties are set at 3 percent for bauxite and iron, and 5 percent for other resources. Dr Soro’s figures underscore Tagivuni’s argument that the current percentage-based approach may not capture fluctuations in international market prices or the full value of extracted commodities.

The call comes as a review committee evaluates updates to both the Mining and Quarries Acts. Officials at the session confirmed the committee will consider Tagivuni’s recommendations as part of its deliberations. No timeline for the review’s completion was provided at the meeting, but stakeholders said submissions and consultations such as the Rakiraki event will feed into the committee’s work.

Landowner groups, customary leaders and industry stakeholders are likely to watch the review closely, because any move to adjust how royalties are calculated—or to include previously excluded resources like artesian and silica-based water—could materially affect revenue streams for both landowners and operators. Tagivuni framed his demand in terms of fairness and legal duty, saying changes are necessary to ensure payments “flow appropriately to the iTaukei landowning units.”

The discussion in Rakiraki represents the latest public airing of concerns about resource benefit-sharing in Fiji. As the review committee considers potential legislative changes, key issues remain whether royalties should move away from fixed percentage models, how to treat water and other non-traditional quarry resources, and the mechanisms to guarantee payments reach rightful landowning units. The outcome of the committee’s work will determine whether those recommendations are translated into amendments to the Mining Act 1965 and Quarries Act 1939.


Discover more from FijiGlobalNews

Subscribe to get the latest posts sent to your email.


Comments

Leave a comment

Latest News

Discover more from FijiGlobalNews

Subscribe now to keep reading and get access to the full archive.

Continue reading