Ministry of Lands and Mineral Resources

Fiji Mineral Resources Department

EXPLORATION AND MINING PROCEDURES

Administrative Control over Fiji's Mineral Resources

The administrative control over mineral resources is the responsibility of the Director of Mineral Resources Department in the capacity as the Director of Mines, although subject to overall policy control by the Minister responsible for mineral resources.

MRD Logo The Mining Act provides for the State to retain the rights of access to all "minerals" defined under the Mining Act, and it is this right which can be granted to individuals through the issue of Prospector's Rights or Mining Leases.

The administrative control over quarry workings lies with the Minister responsible for mineral resources. The Quarries Act (Cap. 147) provides for the regulation of quarry workings by Mines Inspectors appointed under the Mining Act.

Role of Mineral Resources Department

Mineral Resources Department encourages, facilitates and regulates the exploration and development of Fiji's mineral resources. MRD is the administrator and enforcer of the Mining Act, the Quarries Act, and the Explosives Act. When applying the Regulations in these Acts, the Director of Mines main aim is to ensure that good practices are employed in relation to health and safety of workers and in relation to the protection of the environment.

The Mines Inspectors enforce the Mining Act and Regulations (Cap. 146), the Quarries Act (Cap. 147), and the Explosives Act (Cap. 189), and act as the regulatory body for the mining industry. Mines Inspector performing duties.
A Mines Inspector inspects the underground workings at Emperor Gold Mines, Vatukoula

Rights, Licences and Leases Issued

The Director of Mines, grants Prospector's Rights, and with the consent of the Minister, the Director also grants Prospecting Licences, Special Prospecting Licences, Permits to Mine, Mining Leases, Special Mining Leases, Special Site Rights, and Road Access Licences. Applications for any Right, Licence or Lease are considered on their own merit. The criteria for assessing merit are: the expertise and capability of the applicant to undertake the geological programme, any past record that the prospecting company has in mineral exploration, and the financial standing of the company in terms of its financial ability to undertake the proposed work programme. Priority of consideration is obtained when the necessary forms, duly completed, have been lodged at and accepted by MRD.

A Prospector's Right allows the holder to prospect for minerals on any land open to prospecting in Fiji for a one year period. Prospector's can reapply for Prospector's Rights annually. Prospecting Licences and Special Prospecting Licences are usually issued for between one and five years. The terms and conditions of (Special) Prospecting Licences can be varied subsequent to an agreement between the licence holder and the Director of Mines. In arriving at this agreement, the Director considers certain criteria including: the appropriateness of the geological program outlined in the application; the minimum expenditure proposed in the application.

Extensions to Prospecting Licences are normally available, providing any stated licence conditions have been met. Extensions of Prospecting Licences are normally made on a one year basis, although longer periods may be given. Extensions are subject to the same conditions as apply to initial applications, however, in the case of an extension, it is expected that minimum exploration expenditure will significantly increase with each successive extension.

In "mature areas", where extensive prior work has been undertaken, or where a well known geological target is the subject of interest, applicants may apply for an initial Prospecting Licence of 2 - 3 years. In considering the grant of exploration rights over a "mature area" the Minister gives due regard to two factors: the Licence holders capacity/capability to undertake the proposed pre-feasibility/feasibility program, and, the likelihood that the grant will lead to a development decision on the prospect.

While the Government of Fiji is very keen to encourage prospectors and mineral explorers in Fiji, it does not want to see prospective land tied up by companies interested in speculating on the value of the prospect and selling the tenement to make a quick profit.

Reporting Requirements

All Prospecting Licences, Permits to Mine, and Mining Leases are subject to established reporting requirements. Information and data regarding areas currently under licence are confidential to the MRD, although once prospecting or mining rights have been abandoned or relinquished, these data become the property of Government and become publicly available through MRD.

Transition from Exploration to Development

Progression from prospecting to mining follows the issuance of a (Special) Mining Lease as prescribed under the Mining Act, and in conformance with the various special terms and conditions agreed upon between the Director of Mines and the Licence holder. The issuance of the Lease is subject to two conditions. First, the submission of a comprehensive Feasibility Study which demonstrates the commercial viability of the project. The Feasibility Study will be accompanied by a detailed Financing Plan for the development and by an approved Environmental Impact Assessment document, detailing an acceptable environmental impact assessment process. Second, the completion of a Development Agreement outlining the broad principles, responsibilities, and obligations of all parties to the development. This Agreement would normally be prepared through consultation with the Licence holder, the Fiji Government, and representatives of the people of the development region. In general, new mining projects are handled as Executive Agreements between Government and the Licence holder.