Fiji’s only gold mine has em­barked on an $67.42 million ambitious programme of expansion and asset replacement to counter challenges of aging in­frastructure, the current depth of the workings, and the significant increase in fuel and shipping costs.

The company’s comment followed revelations and concerns of an in­ternal document, which suggested it would not make payroll, and even possible closure, if certain targets were not met within a designated timeline.

“The internal document was an ef­fort to keep all 1438 VGML employ­ees focused on the current operating challenges necessitated by a number of factors, which are not unfamiliar to Vatukoula during its 80-plus years of operations,” VGML told SunBiz.

“The new general manager, Li Ji­angwu, is insistent that all employ­ees are kept informed of our chal­lenges and successes as they present themselves.”

Such challenges included a period of low ore grade affecting gold pro­duction, coming directly after the impact of very high rainfall that caused flooding and disruption to the mine operations in the first quarter of the year, VGML said.

In December 2021, VGML conclud­ed final arrangements for a US$30 million (FJ$687m) gold streaming package with Sandstorm Gold Ltd out of Canada, providing the fund­ing for a capital expansion pro­gramme.

The funds are held in escrow with a Nadi-based legal firm, and are be­ing drawn down progressively as the programme advances.

“However, the beneficial impact from such a significant capital pro­gramme cannot realistically be felt, until the equipment is installed and is functional,” VGML said.

To date:

•  a new standalone power plant for the outlying Philip Shaft has been commissioned;
•  Dolphin Shaft has been sunk to 18L, providing access to new work­ing areas;
•  a lift is nearing completion on a tailings dam, the arrival of a new drilling rig for underground explo­ration is imminent; and
•  orders placed for increased pumping infrastructure under­ground.

Except for brief stoppages, Vatu­koula has operated almost continu­ously for 85 years, and has produced seven million ounces of gold.

The company employs over 1400 workers plus sub-contractors.

Mineral Resources permanent sec­retary, Laisa Taga, refused to com­ment when contacted, while Min­ister for Mineral Resources, Jone Usamate, was unaware of the mat­ter, but said he would look into it.

Mt Kasi and Balevuto

The country’s oldest operating gold mine aims to work with interested parties to advance its prospects at a dormant project.

Vatukoula Gold Mines Limited’s sentiments over Mt Kasi, followed ongoing reservations from certain landowners, over the awarding of the initial tender to the Chinese-owned mine operator.

The mines await the award of a prospective licence for the Vanua Levu project.

Goldbasin Mining Fiji Pte Ltd, a subsidiary of Vatukoula Gold Mines, continues to operate under its prospective licence, at Balevuto, Ba.

Goldbasin Mining was given three SPL’s that Vatukoula Gold Mines Limited was awarded. Two of the SPLs relate to sites in Vatukoula.

Another gold mine operator

Meanwhile, Canadian-registered Lion One Metals, is on track to meet its targets as it ramps up for produc­tion late next year, at its Tuvatu al­kaline gold project, in Sabeto, near Nadi.

The gold market price climbed above the US$2000 (FJ$4480) an ounce in March, for the first time since August 2020, in what was inter­preted as a response to Russia’s inva­sion of Ukraine in late February.

However, gold prices have since retreated to range around US$1750 (FJ$3928) an ounce, America’s on­line capital.com, said.

Feedback: frederica.elbourne@fijisun.com.fj