Land Ownership One of the main benefits of investing in Fiji over other countries in the South Pacific region, is that there is an easily identifiable, clear land ownership register, an official agency which deals with all native-land use issues, as well as a well-established native land management and administration system. Land in Fiji is divided into 3 main categories. Native Land, Government (State) Land, and Freehold Land. There is no differentiation between them under the Mining Act, all are subject to the State's right of ownership of the minerals. The ownership of all unextracted minerals in the ground, of every description, including crude oil, is vested in the State (the Republic of Fiji) as per Section 3.-(1) of the Mining Act. Native Land is owned by indigenous Fijians and comprises 83% of the total land area in Fiji. Native Land is reserved for the exclusive use of its owners, but can be leased with the owners consent for fixed periods and for particular purposes. Each lease category has different terms and conditions. Leases may be sold, transferred and varied, subject to the consent of the Native Lands Trust Board (NLTB). Leasing costs comprise yearly rental payments plus a separate lease or premium cost. The NLTB is the statutory body which manages and administers land of this type entrusted to it by landowners. Since most land in Fiji is Native Land, most mineral developments will be situated on it and investors will be able to deal directly with the NLTB. About 7% of all land in Fiji is controlled by the Government (State Land) and, like Native Land, may not be sold. Freehold Land accounts for the remaining 10% of the total land area. Of the 2 mines currently in operation in Fiji, the one owned by Emperor Mines Limited is on Freehold Land, the other, owned by Pacific Islands Gold NL, is situated on Native Land. Landowners Rights The Prospector's Right holder or mining tenement holder is required to give the owner or occupier of the land notice of their intention to enter their land to prospect or to commence mining operations. In the event that the land is Native Land, the prospector must send copies of such notice to the NLTB and to the Commissioner of the Division in which the land is situated. The Commissioner will advise the prospector on how to proceed with landowner relations. Landowner Consents and Objections to Applications In the event that a landowner or occupier complains about the activities of a Prospecting Licence holder within their land area, the complaint is submitted to the Director of Mines who can then instruct the tenement holder to comply with any directions given, or if necessary instruct the prospector to desist from prospecting on such land until amicable relations are restored. Landowner Compensation Compensation payments comprise 2 elements. One element is compensation payable to landowners for permanent damage done to the land. The other element is compensation to the holder of the surface rights to that land, i.e. the occupant/land occupier, lease holder. Neither type of compensation should not be linked to the value of the mineral in the land. It should be noted that landowner compensation is a separate issue to Mining Royalties, as stated in the Mining Act. Compensation payable depends on the type of licence that has been issued. Under a Prospector's Right or Prospecting Licence the level of compensation is most often negotiated in an informal manner, and compensation is paid directly to the landowner. Under a Mining Lease, a Special Mining Lease, a Special Site Right, or a Road Access Licence, compensation levels are determined through negotiations with the landowners and the NLTB. In the recent past, NLTB policy has been to build compensation into the value of the surface rental. To ensure the compliance to the Mining Act and Regulations as well as the Special Conditions attached to the Lease or Licence, including, compensation and rent, prospectors and miners are required to lodge a deposit either in cash or by way of a bond with the Director of Mines to cover all amounts likely to be payable by way of compensation for surface damage. Closed Areas and Protected Areas The Minister is empowered by the Mining Act to declare protected areas, and close specific areas or prohibit or restrict prospecting for any mineral throughout Fiji. The Mining Act describes the classes of land closed to prospecting or mining, and permits the Director of Mines, with Ministerial approval, to make special dispensation in certain cases to allow prospecting or mining in these areas, under certain conditions.
Investors may apply for limited exclusive prospecting and mining rights over such minerals or areas. These exclusive rights are designed to enable the regulation and control of the mineral development to ensure a degree of conservation whilst permitting limited development. More usually, these limited exclusive rights are used to enable the development of national resource endowments while making provision for wide scale prospecting operations subject to conditions on the future development of mineral reserves discovered during the prospecting stage. As a matter of policy, such lands closed or restricted by the Minister are generally available to prospecting, subject to the imposition of special conditions. |
