Ministry of Lands and Mineral Resources

Fiji Mineral Resources Department

MINERAL POLICY - Section 3 : Exploration & Mining

Section 3 - Exploration and Mining Policy

General Principles

3.1 In Fiji, all unextracted minerals belong to the State. Nonetheless, Government recognises that the private sector is the most able developer of Fiji's mineral resources, and hence, allows the private sector complete and open access to develop Fiji's mineral resources. Government does not require equity participation, or any other form of direct involvement in mineral development projects.
3.2 Fiji's exploration and mining administration system is open and unbiased. The guiding principle is that exploration and mining rights are given to any candidate, who by merit, can show Government that they have the capability to carry out an agreed upon work programme. In the case of multiple applicants for a tenement, rights are allocated to the first qualified applicant. This system supports and protects the rights of all investors, both local and foreign, to prospect, explore and mine their mineral discoveries. Investors rights to mineral tenements, and their security of title are enshrined in Fiji's Mining Act and Regulations (Cap. 146). Mineral Resources Department (MRD) is the Government agency responsible for administering this statute.
3.3 Licence holders who exercise due diligence in carrying out, and comply with the proposed activities detailed in their Prospecting Licence, including maintaining a vigorous exploration programme, and accurate, timely comprehensive reporting in accordance with the Mining Act, are guaranteed continuity of title, implying a right to proceed to project development. Over time, Licence holders are expected to relinquish a portion of their prospecting area.
3.4 While the Fiji Government is very keen to encourage legitimate prospectors and mineral explorers in Fiji, it does not want to see prospective land tied up by companies that are only interested in speculative ventures. MRD will actively discourage any company attempting to engage in such speculative ventures.
3.5 Prospecting Licence holders have a right to progress from prospecting to mining if they have complied with the licence conditions and they have proven that a minable resource exists. Permits to Mine can be issued for a maximum of 2 years, and are renewable annually. Mining Leases and Special Mining Leases can be issued for 5 to 21 years. All leases are renewable at the end of the initial lease period. The period of the renewal depends on the size of the proven resource.

Special Policies and Procedures

3.6 The Director of Mines (henceforth referred to as the Director) at the Mineral Resources Department, grants Prospector's Rights under the Mining Act. 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 capacity/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.
3.7 A Prospectors Right allows the holder to prospect for all 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 allow the holder to prospect for those minerals specified in the Licence, and are issued for 1 to 5 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.
3.8 Joint venturers are discouraged from offering front-payments in their joint venture dealings. It is expected that all planned exploration funds will be spent solely on exploration.
3.9 Extensions to Prospecting Licences are normally available, providing all 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.
3.10 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. Further extensions to this Licence may be sought, although this is conditional on the Licence holder undertaking a Pre-feasibility or Feasibility Study with a specified minimum expenditure annually. 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.
3.11 All Prospecting Licences, Permits to Mine, and Mining Leases are subject to established reporting requirements. Once prospecting or mining rights have been abandoned or relinquished, the data from the relinquished area (with the exception of data pertaining to closed or protected areas) becomes the property of Government and is then publicly available through MRD at a nominal charge) Information and data regarding areas currently under licence are confidential to the MRD.
3.12 The orderly housing and maintenance of all drill-cores is the responsibility of the Licence holder until termination or relinquishment of licence. At that time, the Licence holder is responsible for the safeguarding, delivery to Government, or disposal of the drill-cores in an acceptable manner, and under mutually acceptable terms.
3.13 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 and technical viability of the project. The Feasibility Study will be accompanied by a detailed financing plan for the development and by all information/assessments as required by the 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 between 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.
3.14 The mining industry is primarily regulated by the Mining Act and Regulations, although there are supporting statutes, such as the Quarries Act (Cap. 147), and the Explosives Act (Cap. 189). These Acts are administered by the Mines Section and the Mines Inspectorate within MRD
3.15 Fiji's occupational health and safety provisions pertaining to the mining industry is enshrined in the Mining Act and Regulations. Where mining companies can show compliance with the regulations, and application of best-practice work standards, a system of self-monitoring will be developed in consultation with the Mineral Resources Department. This is based on the premise that safe working conditions lead to improved and efficient production in mining.