The Reserve Bank of Fiji (RBF) has issued a clarification regarding the reporting of gold production in Fiji, particularly in the wake of Vatukoula Gold Mines Limited’s (VGML) recent changes to its production strategy. With VGML now focusing on producing gold concentrates, the RBF has adjusted its data presentation to separately reflect gold ore and gold concentrates. This important distinction underscores that these numbers should not be viewed as a comprehensive measure of Fiji’s overall gold production.
Ian He, vice president of VGML, responded to concerns arising from a perceived decline in gold production attributed to this strategic shift. He emphasized that despite initial reports suggesting a staggering 60% decrease, the company’s production levels are actually improving, with a more optimistic projection for 2025 showcasing increased outputs.
In its December Economic Review, the RBF reported a 28.2% decline in gold ore production, primarily influenced by a significant 62.4% drop at VGML. This downturn was somewhat mitigated by a 23.1% increase at Tuvatu Gold Mines. RBF Governor Ariff Ali noted that the confusion stemmed from a generalized reference to ‘gold production’ without clear differentiation that the decrease pertained specifically to gold ore production.
Historically, production figures from both VGML and Tuvatu have been aggregated in reports to provide a collective total for gold production. However, given VGML’s recent pivot towards concentrates, the RBF has tailored its reporting practices to reflect the different processing stages for both gold ore and concentrates. The December Economic Review highlighted that VGML produced 12,400 ounces of gold concentrates during the year.
Governor Ali reiterated that VGML’s overall gold output, measured in net contained gold, remains stable and has not truly diminished. He emphasized that the reported decline pertains only to gold ore and should not lead to a misinterpretation of decreased total gold production in Fiji. This clarification paints a hopeful picture for the gold mining sector in Fiji, showcasing its adaptability and resilience amidst shifts in production methodologies, while continuing to significantly contribute to the country’s economy.