MINING may be contributing less than one per cent of Fiji’s Gross Domestic Product (GDP) currently but it has potentials to become a big earner for Fiji’s economy, said Westpac Fiji senior economist Shamal Chand.
In the latest Westpac Wave released last week in which he presented an update and Westpac Fiji’s outlook on Fiji’s economy, Mr Chand said Fiji sits on the Pacific Ring of Fire, a region known globally for significant porphyry copper-gold and epithermal gold systems and several major exploration projects in Fiji highlight this potential.
“The long-established Vatukoula Gold Mine has produced over seven million ounces of gold and continues to operate as a world-class deposit,” he said.
“The Tuvatu Gold Mine on Viti Levu has begun full underground mechanised operations.
“In copper, the Namosi Joint Venture located about 30km west of Suva contains one of Fiji’s most significant porphyry copper-gold systems.
“It has reported substantial resources and is progressing through feasibility work under Newmont leadership.
“Nearby, the Rama copper-gold prospect on Viti Levu has revealed multiple porphyry targets through drilling and geophysical surveys, positioning it as another highly prospective site for future development.
“These projects indicate the potential for sizeable reserves, increased export earnings, royalties for landowners and new jobs.
“Infrastructure investments linked to mining could also generate wider economic benefits.”
Mr Chand said copper has long term potentials for growth, driven by increasing industrial application.
“Namosi has published indicated resources of ~1.3 billion tonnes at 0.35 per cent Copper (Dec 2019).
“Vatukoula has produced more than seven million oz of gold since 1935.
“Rama has drill intercepts but no declared reserves.
“Over the long term, copper demand looks strong because electrification, electric vehicles, and grid upgrades all require more copper.
“On top of that, AI data centres are adding hundreds of thousands of tonnes of new demand each year, putting even more pressure on already limited supply.
“Copper prices briefly reached new record highs of $US6.58/lb in last days of January, with its long-term price expected to trend upwards.”
Mr Chand said with persistent challenges in growing the tourism and agriculture industries, mining presents another real option in efforts to diversify Fiji’s economy.
