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MINERAL POLICY - Section 1 : Principles |
Section 1 - The Principles Underlying Government's Mineral
Policy
| 1.1 |
The Government of Fiji believes that well-managed mineral sector
developments contribute positively to national growth and social welfare improvements for
all of Fiji's citizens; hence, the Fiji Government actively supports mineral sector
developments. |
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| 1.2 |
State ownership of Fiji's unextracted mineral resources forms the
foundation of Fiji's mineral policy. However, the Government views Fiji's mineral
endowment as part of the birthright of every Fiji citizen; and it sees itself as a steward
of this birthright. As the steward, the Government has put in place the regulatory
mechanisms to ensure that Fiji's mineral resources will be developed in an environmentally
sensitive and socially acceptable manner, and that there is an equitable sharing of the
financial and developmental benefits and costs of mining between all stakeholders. |
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| 1.3 |
Government recognises that the private sector is the most able developer
of Fiji's mineral resources, and so, confers mineral exploration and development rights on
private sector developers. When conferring such rights, Government requires that mineral
developers take into account all the social, environmental, and economic costs and
benefits of the development at the project planning stage, and throughout the life of the
project. |
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| 1.4 |
History clearly shows that mineral sector developments offer unique
benefits as well as pose special problems for communities adjacent to mineral deposits,
and Government views the direct participation of residents as an integral part of a
successful long term relationship. Direct participation can take the form of special small
business opportunities, and direct involvement by the local community with socially
important aspects of mine planning, such as social infrastructural development. This
participation should begin early in the exploration phase and continue through to mine
closure. Essentially, mineral sector developers are encouraged to develop a participatory
and collaborative approach to mine planning and development. |
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| 1.5 |
As well as steward of Fiji's mineral resources, Government sees itself as
a facilitator of investment, and acknowledges that the best way returns to investors can
be maximised, is through the creation of a favourable investment environment. In this
regard the Government has implemented a number of macro-economic policies to encourage
investors, such as the signing of the Multilateral Investment Guarantee Agency (MIGA), the creation of an
Investment Policy Statement, and the development of numerous non-tax incentives.
Government treats all economically viable investment projects equally. |
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| 1.6 |
Government also accepts that mining is an unusually high risk industry and
private investment tends to be attracted to those areas with good geological potential,
transparent fiscal policies, and political stability. Hence Government is in the process
of introducing a low-rate, competitive, transparent fiscal policy that should enable
investors to achieve returns commensurate with the risks that they face. |
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Footnotes [1] Click
on numbers to return to text.
[1] MIGA is an independent agency of the World Bank mandated
to help facilitate increased flows of foreign direct investment to developing countries.
Its core area of business is providing political risk insurance to foreign investors;
available risk coverage includes war and civil disturbance, currency transfer/
inconvertibility, expropriation and breach of contract.
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