An Australian company is facing challenges linked to the government’s efforts to grant a prospecting license for the Mount Kasi Gold Mine in Vanua Levu. It has been revealed that the firm, which landowners prefer for excavating the site, failed to adhere to the proper procedural guidelines.
“This Special Prospecting License (SPL) was advertised in 2010, making it a project over a decade in the making,” said Filimoni Vosarogo, the Minister for Land and Mineral Resources.
Vosaogo noted that the current government inherited the case upon taking office in December 2022, stating that the process was approximately 80 percent complete by that time. He emphasized that there has been extensive consultation, with the previous acting director of mines having met with landowners at least 11 times before the Coalition Government took over. Since then, Vosarogo has met with landowners at least five additional times to explain the ongoing process, which they have reportedly understood.
Landowners had previously rejected the former government’s preference for Vatukoula Gold Mine, instead favoring Aquilo Gold, an Australian junior miner established in 2019, which lists Mount Kasi as its sole project even though the SPL has yet to be awarded.
“Eight companies applied for the SPL, and in terms of preference, the Australian company involved with discussions among the landowners did not rank among the top five,” Vosarogo stated. He added that it is challenging to justify such preferences considering the complex and financially demanding nature of mining operations. For instance, before Lion One in Tuvatu began operations, it had already invested over $165 million. Therefore, he mentioned it is crucial to consider companies with proven technical expertise and financial capacity for such operations.
The announcement regarding the awardee for the Mount Kasi SPL is expected next week.