Mining and Groundwater Sector

The geographical and geological setting of Fiji has attracted multinational exploration companies to invest and successfully prospect for mineral deposits including gold and mineral water.

Fiji is in the south-western Pacific and is a volcanic group of islands consisting of more than 300 islands with a fascinating geological setting within the Pacific Rim of Fire. Such setting generates various types of mineral deposit systems such as high suphidation, low sulphidation and porphyry systems. World metal demands have escalated 17 proponents exploring on land and 1 proponent exploring offshore for certain commodities such as gold, silver, copper, alumina and manganese to cater for the market demand.

The total area explored on land is 320,484.12 Ha and 294,800 Ha is explored offshore on the North Fiji Basin along the Triple Junction setting. High prospective areas of the regional geological settings generate 41 special prospecting licences that are viable for sustainable exploitation that is driven with the changes in commodity prices. The current active gold mine has a mineral resource volume of 4.1million ounces of gold with current mineral reserve of 750,000 ounces of gold, which has been producing for 85 years. Two current projects have been granted mining leases with mine life of 21 years which will enhance the push for developments on the other high grade prospects in the region.

POTENTIAL FOR MINERAL & GROUNDWATER RESOURCES

The potential for expansion of a mineral sector in Fiji is quite promising given its geological formation and location in the Pacific. Groundwater resources on the other hand, show significant potential for mineral water production. Fiji currently has 53 companies (2015 est.) exploring for potential mineral deposits on land covering a total area of 746,877.07 ha (2015 est.).

However, the interest for evaluating offshore deep sea minerals has attracted few companies and two companies have been granted approval to conduct exploring for deep sea minerals.

OPPORTUNITIES IN THE MINING AND GROUNDWATER SECTOR

  • Fiji is a consistent exporter of minerals, primarily gold for close to 85 years now.
  • The value of mineral water exports in 2015 was FJD$200 million while the value of gold exports was FJD$93 million.
  • The geographical and geological setting of Fiji at the edge of the Indo-Australian plate and current commodity prices (like gold) has attracted multinational exploration companies.
  • The success of water exports has further given confidence to entrepreneurs to develop bottling plants indicating market growth potential for groundwater from Fiji.
  • With the increasing global conscience for green productivity and renewable energy, the sector is primed for further grow with a number of international companies applying for rights to explore for geothermal resources.
  • Emerging technologies for offshore or undersea mining, with companies actively lobbying government for opportunities to pioneer a new age of mineral exploration and productionminerals from the sea.

INCENTIVES

TAX FREE REGION INCENTIVES

Who will qualify for this incentive?
This incentive is available to a newly incorporated entity engaged in a new business established in the following areas:-

  • Vanua Levu – included Taveuni, Rabi, Kioa and other islands generally included for government’s administrative purpose as being in the Northern  Division.
  • Also: Rotuma, Kadavu, Levuka, Lomaiviti, Lau: and
  • Nausori-Lautoka region (from Nausori Airport side of the Rewa River (excluding township
    boundary) to the Ba side of the Matawalu River.

Any company may apply to the Minister for Finance in a prescribed form for an operating licence.

The income of any new activity approved and established between:

  1. 1 January 2009 to 31 December 2018 for Rotuma, Kadavu, Levuka, Lomaiviti & Lau
  2. 1 January 2014 to 31 December 2018 for East of Vitilevu (Korovou to Tavua region)
  3. 1 January 2016 to 31 December 2018 from the airport side of the Rewa Bridge
    excluding the town boundary of Nausori, up to the Ba side of the Matawalu River shall be
    exempt from tax as follows:
    • Capital investment from $250,000 to $1,000,000, for a period 5 consecutive fiscal years; or
    • Capital investment from $1,000,000 to $2,000,000, for a period of 7 consecutive fiscal years; or
    • Capital investment above $2,000,000 for a period of 13 consecutive fiscal years.
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Fiji Trade Commission - PNG & MSG

PO. Box 883
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National Capital District
Papua New Guinea

P: +675 320 2208/ E: info@fijitradecom.org

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