Mining currently contributes less than one percent of Fiji’s Gross Domestic Product (GDP), yet it holds significant potential to become a substantial revenue generator for the country’s economy, according to Westpac Fiji’s senior economist, Shamal Chand. In a recent update shared in the Westpac Wave report, Chand presented an optimistic outlook for Fiji’s economic future, highlighting the nation’s position on the Pacific Ring of Fire, a region renowned for its valuable porphyry copper-gold and epithermal gold systems.
Chand pointed out that the long-established Vatukoula Gold Mine has produced over seven million ounces of gold and continues to operate as a world-class deposit. He also noted that the Tuvatu Gold Mine on Viti Levu has recently transitioned to full underground mechanized operations, which signifies growth in the sector.
In terms of copper, the Namosi Joint Venture, situated approximately 30 kilometers west of Suva, is home to one of Fiji’s most significant porphyry copper-gold systems. This venture has reported substantial resources and is currently advancing through feasibility studies under the leadership of Newmont. Additionally, the Rama copper-gold prospect, also located on Viti Levu, has shown multiple promising porphyry targets identified by ongoing drilling and geophysical surveys.
These mining projects not only indicate the possibility of large reserves but also promise increased export earnings, royalties for landowners, and the creation of new jobs. Furthermore, investments in infrastructure related to mining could yield broader economic benefits for the country.
Chand emphasized that copper has considerable long-term growth potential, fueled by its rising industrial applications. 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 continued production at Vatukoula since 1935 showcases mining’s viability in Fiji. Although Rama has reported drill intercepts, it has yet to declare reserves.
Looking ahead, the demand for copper is expected to remain strong, driven by electrification, the widespread adoption of electric vehicles, and necessary upgrades to power grids. Additionally, the data centers supporting artificial intelligence are adding hundreds of thousands of tonnes of new demand each year, pressuring an already limited supply. Recently, copper prices reached new highs, with projections for continued upward trends in the long term.
As Fiji faces persistent challenges in expanding its tourism and agriculture sectors, the mining industry presents a viable option for diversifying the nation’s economy and tapping into new sources of revenue. This outlook instills hope for future economic stability and growth in Fiji, showcasing the promising prospects of its natural resources.