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Home and Essential Contacts A Leading Light in Pacific Mining A Young Geological Environment Base and Precious Metal Mineralisation Minerals Administration |
Fiji: Minerals Administration In addition to its information services, the Mineral Resources Department (MRD) has responsibility for handling licence applications. Its staff can assist with enquiries regarding this process, the rights and obligations involved at each stage, and the information that is required for applications to be processed. The mining industry in Fiji is controlled by the terms of the Mining Act, which was placed on the statute book in 1978. Revisions to the enabling Regulations were made in 1985, and the MRD is currently in the process of preparing further revisions to the Regulations.
Fiji's mineral resources are owned by the State. Using the principle of acting as a steward for the Fijian people in this area, the government has emplaced regulatory mechanisms designed to ensure that mineral development is carried out in an environmentally sensitive and socially acceptable way, with an equitable sharing of both the benefits and costs of mining between all stakeholders. Companies undertaking mineral development projects are encouraged to develop a participatory and collaborative approach with local residents, whose direct involvement - be it in the form of small business opportunities or social infrastructure development, for example - should be an integral part of any project. In contrast to other countries in the region, land ownership in Fiji is clearly established, and there is an effective land management and administration system in place. In the past, land issues in the western Pacific have proved to be an insurmountable hurdle to mineral development. This is not the case in Fiji, where land is divided into three categories: Native Land, State Land and Freehold Land.
Native Land, owned by indigenous Fijians, makes up by far the major holding (83%). Although it cannot be sold, individual areas can be leased with the consent of their owners. Such leases may in turn be sold, transferred or varied with the consent of the Native Lands Trust Board, which manages and administers this type of land on behalf of its owners. A further 7% of the country is State Land, while Freehold Land makes up the remaining 10%. In common with many other countries, Fiji's mineral licensing policy differentiates between the exploration and production stages of a project. A Prospector's Right allows the holder to prospect for all minerals on any land open for prospecting for one year. Prospecting Licences and Special Prospecting Licences, valid for one to five years, allow the holder to prospect for specified minerals. Prospecting Licences cover areas of up to 400 ha; areas greater than 1,300 ha are covered by Special Prospecting Licences, the terms and conditions relating to which are open to negotiation. Special rules apply to licences covering 'mature areas', where extensive work has been carried out before or where a well-know geological target is the subject of interest. In this case, the initial Prospecting Licence can be granted for two-to-three years, conditional on the company's ability to progress the project through to the development stage. Licence holders who comply with specific exploration work and reporting commitments are guaranteed continuity of title, implying a right to proceed to project development. Some land relinquishment is also expected over time. Prospecting Licences can be renewed, normally in one-year increments and subject to increased expenditure commitments.
Mining can be undertaken under the terms of a two-year Permit to Mine, which can also be extended in one-year increments. This can be substituted by a Mining Lease if an area can be shown to have long-term mining potential. While in both cases the area covered cannot normally exceed 40 ha for precious metals or 128 ha for other minerals, larger areas may be negotiated. However, progression from prospecting to mining normally follows the issuance of a Mining Lease, which is dependent on the completion of a feasibility study that demonstrates the commercial viability of a project. A development agreement must also be in place, outlining the broad principles, responsibilities and obligations of all the parties to the development. This agreement is normally prepared through consultation between the licence holder, the government and representatives of the people of the development region. A Mining Lease is granted for a minimum of five years and a maximum of 21 years. 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 (and drill cores, where appropriate) from the area become Government property and are then publicly available from the MRD. Data regarding areas currently under licence are confidential to the MRD.
© Mining Journal 1998 Designed and produced by angelcom, London.
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