Shareholders of Kinetic Growth Fund (KGF) are set to meet later this month to consider a proposal for a $5 million loan guarantee aimed at upgrading Island Quarries Ltd (IQL), a quarry operation in Mau Village, Namosi, where KGF holds a majority stake. The company expressed confidence in the quarry’s potential, emphasizing the importance of scaling operations to meet the growing demand for high-quality materials in Fiji and surrounding regions.
In a letter to its shareholders, KGF outlined significant efforts taken over the past year since it assumed majority ownership of IQL. These steps included resolving regulatory issues, creating a comprehensive business plan, renewing leases, and securing support from local landowners. With these foundations established, KGF believes IQL is now ready to seek financing for essential equipment that will enable it to expand operations rapidly.
KGF has already lined up both debt and equity funding for IQL, which underscores its belief in the quarry’s future profitability. The share prices of KGF, which trades on the South Pacific Stock Exchange, stood at $1.50 at the time of the last report.
Previously, IQL had faced challenges, including a tragic landslide incident in March 2020 that suspended operations shortly after KGF acquired it. Following a committed site rehabilitation plan in partnership with the Mineral Resources Department, IQL successfully resumed its business in 2023 after resolving various challenges over the last few years.
Similar to the broader trend in Fiji, where the government is actively supporting rural entrepreneurship and economic growth through various initiatives, KGF’s strategy points to resilience and a firm focus on long-term growth, which is vital for investment and operational success in the region.
This move appears to be a promising step not only for KGF and IQL but also for the local economy, as the enhancement of quarry operations could supply vital materials for infrastructure projects. A successful upgrade of the quarry could lead to job creation and support for local businesses, reinforcing the narrative of recovery and growth in Fiji’s economy.
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