Ministry of Lands and Mineral Resources

Fiji Mineral Resources Department

MINERAL POLICY - Section 4 : Sustainable Development

Section 4 - Sustainable Development Policy

General Principles

4.1 Government's main aim for the mineral sector is to ensure that developments proceed in a sustainable manner. Sustainable mineral sector projects are those that effectively incorporate community participation during the corporate decision-making process, that ensure an equitable distribution of the benefits arising from mine developments, and that, having carefully assessed the socio-environmental impacts, minimise these impacts.
4.2 Government sets environmental policies at two levels; the Department of the Environment coordinates the formulation and implementation of national policies, while MRD, as the main regulating agency for the mineral sector, sets complementary mineral sector policies.
4.3 For the purposes of the on-going monitoring/compliance programs, Fiji adopts a pragmatic policy towards compliance with acceptable socio-environmental standards and pollution abatement technology. Government places more emphasis on mining companies complying with agreed emission levels, than with the methods of abatement to achieve compliance. This then provides investors the flexibility to choose measures which will reduce pollution levels in the most cost effective manner, subject to Government approval.
4.4 Government promotes a self-regulatory approach to environmental monitoring. While the Government formulates and sets socio-environmental standards, it undertakes to work with the mining industry to develop codes of practice that will enable the mining industry to meet or exceed such standards.
4.5 Government recognises and enforces the polluter-pays-principle. The developer will be liable to pay compensation to any person or community whose lifestyle or income is adversely affected by the socio-environmental impacts of the mine. In addition, the developer is responsible for all costs associated with mitigation and rehabilitation activities as required, from initial exploration to post-closure of mining activity.
4.6 Government requires that mining companies take precautionary measures to prevent or minimise negative socio-environmental impacts of mining. In instances where there is a significant risk of serious or irreversible damage, or an element of scientific or technical uncertainty exists regarding elements of mine development, Government then expects that precautionary abatement/mitigation measures be taken. Where such measures are required they will be expected to address the worst case scenario.

Specific Policies

4.7 Government recognises the economic contribution of mineral sector developments to national growth, but also accepts that mineral sector developments have socio-environmental impacts. Government will ensure that only those developments which have a net benefit in terms of total costs and benefits (including economic, social and environmental costs and benefits) proceed.
4.8 The Dept. of the Environment (as the national environmental policy formulating body) has established an environmental impact assessment process which provides a framework for the assessment of all socio-environmental impacts of mining projects. Developers are required to submit all information/assessments as required by this process to the Mineral Resources Department (as the primary regulating agency for the mineral sector).
4.9 Developers are expected to identify anticipated impacts and suggest methods of compliance with acceptable international standards for mine-related environmental releases. They are also expected to provide technical justification for their choice of environmental monitoring program, and for environmentally-sensitive mine-design decisions. During the Environmental Impact Assessment process the developer will recommend the necessary policies and measures to manage the socio-environmental impacts of the project. The developer will meet the costs of any required audit of the Environmental Impact Assessment document.
4.10 The mining industry, in consultation with Government, will formulate an environmental code of practice for its members, and will set acceptable environmental standards. In addition, the industry will be required to devise a self-regulatory mechanism to ensure that its members adhere to the codes of practice. This mechanism will be reviewed by the Mineral Resources Department. All monitoring, to ensure compliance with socio-environmental standards, will be undertaken by Government-accredited laboratories or consultants. All costs of monitoring will be borne by the mining project developer.
4.11 Developers are required to post a refundable bankers guarantee, as surety of best practice. The amount of the bond will be determined by the MRD according to the element of risk associated with the project. The full bond or a partial amount thereof may be used to remedy unacceptable environmental impacts of the mining project, or may be used as a penalty for late or non-remediation of remediable impacts identified during Environmental Impact Assessment process.
4.12 The developer will pay compensation to any person or community whose well-being, environment, or income is adversely affected by the mining project. The level of compensation will be determined by Government, in consultation with the mine developer and the person or community entitled to such compensation, after considering the degree of impact. Compensation is linked to the degree of impact, not to the value of the mineral.
4.13 Wherever possible, mines are expected to rehabilitate progressively during their operation. Government believes that, ultimately, this will reduce the total costs of rehabilitation. In line with Government's adoption of the precautionary principle, and to ensure that sufficient funds are available to complete rehabilitation at mine closure, the mining project developer will be expected to make contributions to a Mine Closure and Rehabilitation Fund. The parameters and objectives of this fund will be established as part of the comprehensive Development Agreement, prior to mine construction. Contributions to the fund can be flexibly organised to reflect debt repayment or cyclical factors but the fund must represent a good faith effort by project sponsors to make financial provision for the maintenance or restoration of the mining area after the cessation of mining. The final state will be ascertained from the outset, and the repaired state will be subject to an impartial assessment, to ensure that it meets final state specifications.