The absence of a gold refinery in Fiji poses challenges for the local gold mining industry, particularly for Vatukoula Gold Mine Pte Ltd (VGML) which is currently exporting gold in the form of concentrates and gold doré. Ian He, the vice chairman of VGML, has noted that this limitation has compelled the mine, previously the nation’s only operational gold mine until Lion One opened Tuvatu in 2023, to export its materials rather than process them locally.
Mr. He expressed a willingness to sell what the company is exporting to local politicians if they can identify a domestic market for Vatukoula’s gold products. He pointed out that exporting costs them additional shipping fees and that the company has been loading gold concentrates into cargo containers since January, aiming for a substantial export of 800 tonnes in a single shipment.
VGML predicts that this shipment could generate around $4.9 million in foreign exchange, whereas processing the concentrates into doré bars for export would yield approximately $0.55 million less, about an 11.3 percent decrease in potential earnings. The economic implications extend to government tax revenues as export duties are calculated based on foreign exchange earnings.
The company has recently found itself embroiled in political controversies, with accusations from certain political factions regarding smuggling practices. Mr. He firmly denied these accusations, clarifying that they are in the process of applying for the necessary export permits which requires lab assay results to be completed prior.
This controversy is exacerbated by ongoing debates in Fiji regarding the transportation and exportation of gold ore concentrates. Previous articles highlight the conflict between the government and the Fiji Labour Party (FLP), where the FLP has questioned whether all transportations adhered to mining regulations, particularly regarding approvals from the Director of Mines. In defense, the government has asserted that the export practices of VGML are legal and conducted under oversight.
Looking forward, the situation presents a critical opportunity for all stakeholders involved, including government leaders and opposition parties, to engage in constructive dialogue aimed at strengthening governance and regulatory clarity in the mining sector. This could foster a conducive environment for economic growth while ensuring resource management that benefits local communities. By collaboratively addressing these pressing issues, there is hope for establishing a sustainable mining ecosystem that meets both legal and community expectations, ultimately promoting economic benefits across Fiji.
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