Mining currently contributes less than one percent of Fiji’s Gross Domestic Product (GDP), but it has significant potential to transform into a pivotal revenue source for the nation’s economy, according to Shamal Chand, a senior economist at Westpac Fiji. In a recent update included in the Westpac Wave report, Chand painted an encouraging picture for Fiji’s economic landscape, emphasizing the country’s strategic location on the Pacific Ring of Fire, an area known for its rich deposits of valuable minerals, particularly porphyry copper-gold and epithermal gold systems.
Chand highlighted the Vatukoula Gold Mine, which has produced over seven million ounces of gold and remains a world-class mining operation. He also noted the advancement of the Tuvatu Gold Mine on Viti Levu, which has moved to full underground mechanized operations, indicating healthy growth within the sector.
On the copper front, the Namosi Joint Venture, located about 30 kilometers west of Suva, boasts one of Fiji’s most significant porphyry copper-gold systems. This venture has reported substantial resources and is currently undergoing feasibility studies led by Newmont. Furthermore, the Rama copper-gold prospect on Viti Levu has identified multiple promising porphyry targets through ongoing drilling and geophysical surveys.
The potential of these mining projects goes beyond mineral reserves; they offer a path to increased export earnings, royalties for landowners, and the creation of new jobs. Enhancements in mining-related infrastructure could further catalyze broader economic gains for Fiji.
Chand indicated that the long-term growth potential for copper is substantial, driven by its increasing industrial uses. For instance, the Namosi project has indicated resources of approximately 1.3 billion tonnes at a grade of 0.35 percent Copper as of December 2019, while the continuous operation of Vatukoula since 1935 substantiates the viability of mining in Fiji. Although Rama has reported promising drill intercepts, it has yet to confirm any reserves.
Looking into the future, demand for copper is expected to remain strong, propelled by electrification, the rising popularity of electric vehicles, and crucial upgrades to power grids. Additionally, data centers that support artificial intelligence are driving a surge in demand, adding hundreds of thousands of tonnes each year to an already limited supply. Recently, copper prices have surged to new heights, with forecasts indicating continued upward trends.
As Fiji grapples with ongoing challenges in expanding its tourism and agriculture sectors, the mining industry emerges as a credible option for diversifying the economy and unlocking new revenue streams. This optimistic outlook offers hope for Fiji’s economic stability and growth, underscoring the promising potential of its natural resources.