Fiji’s oldest operating gold mine, Vatukoula Gold Mines (VGM), is facing significant challenges due to resource depletion, outdated equipment, and a decade-long lack of exploration efforts. With production hampered, VGM has welcomed a crucial investment from China’s Shandong Zhaojing Group Company Limited, which has taken control of the mine and committed to a minimum of $F200 million for necessary upgrades and infrastructure improvements.
VGM vice chairman Ian He highlighted the urgent need for modernization, stating that after 90 years of mining, facilities at Vatukoula are in dire condition and require replacement. He pointed out that the easier-to-extract resources have been largely depleted, forcing the operation to scavenge the remaining deposits left by previous owners. This scavenging approach currently undermines the sustainability of the mining operation.
Despite these challenges, the mine continues to operate as it ramps up its efforts to upgrade its facilities without halting production to maintain employment levels. The upgrade process, which is expected to unfold over the next two to three years, will see VGM gradually increasing its production output. Last year, the mine was producing around 600 tonnes of ore per day, but recent improvements have raised that figure to approximately 1000 tonnes, with a goal of reaching 1500 tonnes per day as investments in operations yield further benefits.
Moreover, VGM has begun mining its tailings dams and has gained full ownership of Pangea Gold Corporation Limited, allowing them to reprocess previously discarded material. The total mining area extends about 12 square kilometers, with an additional 200 kilometers available for exploration near the mining lease, and a newly obtained exploration permit for the Mt Kasi area covering nearly 600 square kilometers.
Though Vatukoula has faced considerable hurdles, the commitment to substantial investment and the recent operational improvements provide hope for a revitalized mining future in Fiji.