The Tuvatu gold mine, located in Sabeto near Nadi, is set to surpass Fiji’s historic Vatukoula mine, according to Lion One Metals Ltd., the Canadian company that owns it. In a recent interview, Lion One’s founder and president, Walter Berukoff, expressed confidence that the expansion and operational management under Arete Capital Advisors will elevate Tuvatu’s production and significance.
“Yes, it will,” Berukoff affirmed when asked if Tuvatu would be larger than Vatukoula, which has been in operation for over nine decades. He envisions that Tuvatu will have a generational impact, potentially remaining operational as long as its older counterpart.
Current global gold prices are at historic highs, providing a favorable climate for gold mining, which Berukoff believes will persist. “This is the first time that we as a small company can make a small profit,” he noted, emphasizing that their total investment in Tuvatu has reached approximately CAD 300 million (FJD 500 million). Berukoff indicated that they have significant capital to recoup but are optimistic about the mine’s profitability due to soaring gold prices. With gold recently reaching a record of USD 5,500 (FJD 12,141) per ounce, the company’s previous projections at around USD 2,500-2,600 per ounce now seem conservative.
The collaboration with Arete Capital is a strategic move aimed at transforming Tuvatu into a profitable mine. Arete specializes in revitalizing old or abandoned mines, and Berukoff is optimistic about the new partnership. They are investing USD 15 million (CAD 15 million) for a 9.9% stake in Lion One, which will not give them control but offers essential expertise for mining expansion. Immediate plans include increasing the mining operations up to 600-700 tonnes per day and doubling the annual gold production.
Much is resting on Arete Capital’s involvement, with their CEO, Campbell Olsen, set to lead the management team at Tuvatu. Berukoff sees this collaboration as a vital step toward turning Tuvatu into a major player in the gold mining sector, bringing in the necessary engineering and modern management skills.
As the Tuvatu gold mine gears up for expansion, the anticipated success promises a brighter future for the mining industry in Fiji, highlighting the potential for growth in this economically significant sector during times of favorable gold prices.
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