VATUKOULA Gold Mine Pte Ltd (VGML) is committing $15million on exploration work over the next three years at Mt Kasi Gold Mine in Vanua Levu, as work begins by its teams of geologists and environmental staff following a decision by landowners to allow work to progress at the site.
VGML vice chairman Ian He confirmed this in an interview with this newspaper, saying the investment at Mt Kasi was part of the $200million outlay committed to by VGML’s new controlling shareholder Shandong Zhaojing Group Company Limited, one of China’s leading gold mining companies with projects in China and Africa, when it bought the company in January this year.
“We are going to commit a total of $15.7m for the initial exploration program at Mt Kasi over the next three-year period – that’s the commitment that the controlling shareholder has committed,” Mr He said.
VGML, the operator of Vatukoula Gold Mine in Tavua, was awarded a Special Prospecting License (SPL) for Mt Kasi last June following a competitive tender process by Government in 2020.
However, opposition from landowners who preferred an Australian company over VGML had put things on hold.
Talks brokered by the Ministry of Lands and Mineral Resources led to a breakthrough early this month, allowing VGML now to proceed.
“Eventually the landowners understand our position, understand our intention and also understand our capability,” Mr He said.
“More importantly, understand that we are a socially responsible corporate entity and that we are going to take care of the local people’s interest and we are also going to take care of the local environment and create employment. So eventually, through the dialogue, the local landowners came to know Vatukoula Gold Mine and we reached a consensus where they now allow us to access the land and start the exploration activities.
“At this stage, we have reached the agreement in principle so currently we have sent a team of geologists to conduct preliminary exploration activities at the site.
“We have also sent a team of environmental staff to collect baseline environmental samples for the purpose of environmental assessment for the future environmental assessment study.
“We still have a lot of details to hem out and we have lots of conversations scheduled. But I think the local people have seen the initial benefit through the participation of Vatukoula Gold Mine in that area.
“So at least now we have generated some employment already by hiring the local people as supporting staff in the preliminary exploration and environmental sampling activities.”
Preliminary exploration work will take up to six months before the more capital-intensive drilling begins, according to Mr He.
He said the exploration phase at Mt Kasi is likely to take between three to five years while the resumption of any mining activity cannot be determined at this stage.
Mt Kasi Gold Mine was last active in 1998 and had to close due to financial difficulties faced by its operator, linked to low world gold prices.
