'Landowners should get 100% of mining royalties'

Landowners should receive 100 per cent of mining royalties and have the right to approve projects on their land.

This was the message of the Fiji Pine Limited legal adviser Jacob Lanyon at the public consultation on the review of the Mining Act 1965 and the Quarries Act 1939 at Tanoa International Hotel at Votualevu in Nadi today.

Mr Lanyon stressed that current laws fall short of protecting indigenous landowners interests.

He said the principle of Free, Prior and Informed Consent (FPIC) must be written into the law, making landowner approval a requirement before any mining licence is issued.

“Without the landowners consent, there should be no mining licence issued, because at the end of the day it is their land,” he said.

Mr Lanyon said only five per cent of mining revenues is currently paid to landowners as royalties, despite companies extracting significant mineral wealth.

“We strongly support landholders receiving 100 per cent of the royalties. Government already benefits from VAT and taxes. Landowners deserve full royalty payments,” he said.

He also called for landowners to be given equity stakes in mining companies operating on their land, saying this would provide longer-term benefits beyond royalty payments.

“Royalty is one thing. Equity is another. Having shares in the company itself will empower landowners beyond a five per cent debate,” he said.

Mr Lanyon said reforms should also address long-term leases and ensure fair compensation where mineral ownership defaults to the state.

He urged that environmental responsibilities, including land restoration, infrastructure maintenance and community development, be agreed at the outset and backed by legislation.

“There should be strong discussions at the very beginning before the mining companies start operating, just to ensure roads are maintained, infrastructure is kept and there is development and growth.”

“These matters must be legislated into the Mining Act,” he said.

Mr Lanyon also called for direct government investment in the mining sector to retain more value within Fiji.

“It is about time that the Government invest in the mining industries. We have experts in this area, and this will avoid giving 95 per cent of the revenues to foreign companies.”