Fiji’s oldest operational gold mine, Vatukoula Gold Mines (VGM), is encountering significant difficulties stemming from resource depletion, outdated technology, and a prolonged lack of exploration. This challenging landscape has prompted VGM to embrace a pivotal investment from China’s Shandong Zhaojing Group Company Limited. The firm has assumed control of the mine and pledged at least $F200 million for essential upgrades and infrastructure enhancements.
Ian He, the vice chairman of VGM, stressed the urgent necessity for modernization, revealing that after 90 years of mining, the facilities at Vatukoula are in dire need of replacement. He noted that most of the easily accessible resources have already been exhausted, compelling the mine to utilize the remaining deposits that were overlooked by previous operators. This scavenging method poses risks to the sustainability of the mining activities.
Despite these pressing challenges, VGM remains operational, working to enhance its facilities while maintaining production levels to ensure job security. The upgrade process is set to span the next two to three years, during which VGM aims to gradually boost production. Last year, the mine produced about 600 tonnes of ore per day, a figure that has increased to approximately 1000 tonnes following recent upgrades. The ultimate goal is to achieve a production rate of 1500 tonnes per day as improvements take effect.
In addition, VGM has started mining its tailings dams and acquired full ownership of Pangea Gold Corporation Limited, which enables them to reprocess previously discarded materials. The total mining area spans roughly 12 square kilometers, with an additional 200 kilometers available for exploration surrounding the mining lease. VGM also recently secured an exploration permit for the Mt Kasi area, covering nearly 600 square kilometers, opening new avenues for potential resource discovery.
While Vatukoula faces significant challenges, the infusion of investment and concurrent operational enhancements offer a hopeful outlook for the future of mining in Fiji, paving the way for a revitalized industry.