THE absence of a gold refinery in Fiji has meant that gold from the gold mine in Vatukoula, which for the longest time was the nation’s only operational mine before Lion One opened Tuvatu in 2023, must be exported in the form of gold concentrates and gold dores, said Vatukoula Gold Mine Pte Ltd (VGML) vice chairman Ian He.
And he has offered to sell what they’re exporting if politicians accusing them of smuggling gold can find the domestic market or buyers for Vatukoula’s gold concentrate or gold dore.
“We will be more than happy to sell to them. Exporting these products costs us in shipping fees,” Mr He said as controversy erupts over their preparation to ship out 40 containers of gold concentrates.
In an interview with this newspaper, Mr He said the company has been accumulating gold concentrates and loading sacks of them into the cargo containers since January, as they are only able to produce 20 tonnes of gold concentrates a day from the mine but aim to export 800 tonnes in one export batch.
“We have applied for the export of 800 tonnes concentrate, which is in 40 containers waiting for export,” Mr He said.
“VGML will earn about $US4.9million ($F11.28m) foreign exchange from the exporting this batch of concentrate. “However, if VGML process the concentrate into gold dore and export, VGML will earn US$0.55million less or 11.3 per cent less foreign exchange earnings.
“Because the export duty and royalty are caculated based on our foreign exchange earnings, the government will also collect 11.3 percent less tax dollar if VGML export dore bar,” Mr He said.
“VGML continues to export dore bar from its tailings retreatment operation.
“The dore bar is exported to Australia.
“VGML has two final products: gold concentrate and gold dore.
“The former is exported to a Chinese smelter and the second is exported to Australia.”
Gold concentrate is extracted from the gold ore and has a higher grade of 80g/t while gold dore is the purer form of the concentrate, containing 51% gold, 39% silver and 10% impurities, according to Mr He.
This week, the company had suddenly found itself at the centre of a political tit-for-tat over its operations, with one political party accusing it of smuggling gold ore and the Government sleeping on the job.
“All this accusation is totally wrong. We’re planning to export but we haven’t exported anything yet,” Mr He said.
VGML had been awaiting assay results from its lab, a pre-requisite for an export permit application to the Mineral Resources Department, Mr He said.
NOTE: This article was first published in the print edition of the Fiji Times dated FEBRUARY 28, 2025.
