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MINERAL POLICY - Section 5 : Land Use & Tenure |
Section 5 - Land-Use Policies and Security of Tenure
General Principles
| 5.1 |
In addition to the Mining Lease, developers are required to obtain a Land
Lease to gain legal title to the land on which they
intend to mine. The Mining Lease and Land Lease (or Titles) confer on the developer the
right to undertake specified activities in a defined area as stated in the leases. |
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| 5.2 |
Government acknowledges that security of land tenure is a critical issue
for mineral sector investors. Hence Government is totally committed to enforcing investors
land rights which are enshrined in both the 1990 Constitution and the Land Transfer Act
(Cap. 131). The Land Lease itself is a legally binding document that guarantees security
of land tenure. |
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| 5.3 |
However, developers should be aware that in the long run, good
communications with landowners are most likely to minimise land disputes during
exploration and mining operations. In island communities where land is in short supply,
land problems are often associated with landowner dissatisfaction over the terms of
compensation payments for land acquisition, surface land disturbance, and the loss of
traditional land use. Without special compensatory policies, landowner grievances can
become a significant impediment to harmonious long term mine operations. Prior to mine
construction, mining companies must obtain formal agreement with the area residents,
through the appropriate channels, regarding compensation payable for loss of tenure and
damage to surface improvements. |
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| 5.4 |
All compensation negotiations must be channelled through the appropriate
official agencies in consultation with MRD. The agencies (see
5.7) which assist mining companies with land compensation negotiations have as their
main aim promoting projects which maximise benefits to the current and future land owners
of the proposed development area without jeopardizing project viability. |
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| 5.5 |
Unextracted minerals belong to the State, however, mining Royalty payments
are paid to Government but then distributed to landowners. Developers must recognise that
the Royalty payment, for the right to extract minerals, and the compensation payments, for
landowner loss of tenure and damage to land and improvements thereon are separate. Clear
guidelines on how to assess each are provided in the Mining Act, the Native Land Trust Act
(Cap. 134) and the Crown Acquisition of Lands Act (Cap. 135). |
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Specific Policies
| 5.6 |
Land Leases for Native Land can be obtained from, and are administered by
the Native Land Trust Board (NLTB), Land Leases for State Lands can be obtained from the
Lands Department, within the Ministry of Lands, Mining and Energy. |
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| 5.7 |
For Native Land, pre-development relations with landowners should be
channelled through the NLTB in coordination with MRD. Likewise, for all land compensation
and land lease questions relating to Native Land, project sponsors should look to the NLTB
for assistance. After mine development has occurred, mining companies may look both to
local government authorities and NLTB for guidance and assistance. Land is a sensitive
topic in island countries and mining companies should be prepared to spend time informing
landowners of developments. |
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| 5.8 |
For State Land issues should be directed through Lands Department in
consultation with MRD staff. Mineral sector investors are asked to meet certain criteria
before land leases are issued, these relate to environmental protection, technical
specifications for buildings and other aspects of infrastructure, as well as rural
development. These criteria are determined by the Development Control Unit, within the
Department of Town & Country Planning. |
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| 5.9 |
The land administration agencies are essentially there to facilitate as
well as regulate. They recognise the importance of ensuring acceptable returns to the land
owner while acknowledging that compensation payments can shift the balance from a viable
to a non-viable project. Developers are encouraged to acquire independent land valuations
prior to entering negotiations for land compensation. The NLTB undertakes its own land
valuations and provides these to the landowners. For State Land, the Crown Acquisition of
Lands Act stipulates the method of assessing compensation payable, and the elements to be
considered in the compensation package. |
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| 5.10 |
Government provides 2 levels of protection of property rights, and land
tenure security for mineral sector investors. Protection against political expropriation
exists in the form of insurance facilities to investors through the MIGA. At a local
level, mineral sector investors' land tenure rights are protected by the mining lease, and
the land lease. |
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| 5.11 |
Land disputes can arise from disagreements over lease conditions, or as a
result of non-lease related issues. If the dispute concerns conditions in the land lease
document, then the matter must be resolved between the 2 parties. When the dispute has
arisen on Native Land, due to non-lease issues, then the NLTB will intervene and draft
guidelines for conflict resolution. In these cases the NLTB will act as a conciliator. For
all land disputes, the Government and NLTB, will take an active role to ensure that an
amicable settlement is reached as quickly as possible. |
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Footnotes [2] Click on numbers to return to text.
[2]Land in Fiji is divided into 3 types, Native Land (83% of
all land in Fiji), State Land (9%), and Freehold Land (8%).
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