EXPLORATION is a high risk business for mining companies, says Vatukoula Gold Mine Pte Ltd vice chairman Ian He.
Speaking at the public consultation on the review of the Mining Act 1965 and Quarries Act 1939 in Tavua, Mr He said people could explore areas spending millions of dollars with no result.
“For the last 50 years many companies have come over to Fiji to conduct exploration and then leave because they were not successful,” he said.
“That is how risky it is.”
He said the industry also faced the problem of land access.
“Because we conduct exploration works, we have to bring our equipment and put them on certain surfaces temporarily.
“We have difficulty in accessing the land when the exploration alone could bring benefits to the landowners.
“If we find any mineral deposits, their land value will increase. In other countries, landowners support the exploration activities but here it is just opposite.
“Here if we want to access their land for exploration, they block us. They demand a lot of compensation.
“The reason for this because there is no established mining industry in Fiji. There are only three mining companies operating in Fiji and landowners don’t understand the benefits they can enjoy when people conduct exploration for minerals.
“So more awareness needs to be done for them to understand what happens when companies come in to conduct exploration projects.”
Mr He said when a mineral was found during an exploration, the company would invest more into the community.
“They will build a mine and employ the locals. That adds more value to the community.
“The landowner will really benefit when the mineral deposit is found.
“We will build a mine and extract the mineral. That means we will lease their land, we will employ their people, pay their salary, pay taxes to the Government. All of this adds economic value to the community.”
