fef - fiji mining sector - challenges opportunities - george niumataiwalu

8/3/2019 Fef - Fiji Mining Sector - Challenges Opportunities - George Niumataiwalu

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FIJIS MINING SECTOR

Challenges and OpportunitiesGeorge Niumataiwalu

Vice Chair, Mining & Quarrying Council

Fiji Employers Federation


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Reality: Mining is a

high risk industry


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Why Fijis Full Mining Potential

has not been realised sooner? Long Gestation Period

Volatile Commodities markets

Deficient regulatory framework

Highly technical and complex variablesinvolved

Tainted by past practices

Lack of political will


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Why Now?

Commodities markets at all time highs

Mining and exploration companies arewilling to invest aggressively again

Shortage of physical metal supply dueto lack of producing mines, particularlygold

Medium to long term metal forecasts,particularly for gold and copper, lookvery optimistic


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Gold Price Trends, 2000-2010Source: www.kitco.com


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Copper price trends, 2000-2010Source: www.kitco.com


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Location of Key Possible & Existing Mining ProjectsMap source: www.fijislandscapes.com

Vatukoula, Au-Ag

Namosi, Cu-Au

Tuvatu, Au

Faddys, Au Wainivesi Zn -Au

Nawailevu, Bauxite

Mt. Kasi, Au


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Fiji Mine Production Possibilities Schedule

Projects, excl.Iron Sands,Manganese,others

Possible Yr ofProduction

Mine Life,years

GrossRevenue atCurrentPrices, FJDmillion

Namosi 2014/15 30-40 $1,021

Mt. Kasi 2013/14 7-10 $120

Vatukoula Existing 10+ $240

Wainivesi 2010 10+ $94

Nawailevu 2010 5+ $40

Tuvatu 2013 10+ $48

Faddys 2014 7-10 $120

Total at Full Production $1,794


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Mining Sector Expansion: Implications for TotalGDP

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2010 2011 2012 2013 2014 2015

Projected Mining Sector Contribution to Total

GDP, $ millions

Namosi Project, $ millions

Mining Sector Expansion less Namos i,millions

GDP at current prices (IMF), FJD m illio

`

Mining SectorAt 16+% GDP

Mining SectorAt


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FIJI ECONOMY NEEDS A BOOST

THAT ONLY THE MINING SECTORHAS THE POTENTIAL TO DELIVER

OVER THE LONG TERM!

NO OTHER SECTOR CANDELIVER AN INCREASEIN TOTAL GDP BY AT LEAST 16%+IN THE NEXT 5-10 YEARS, IF EVER


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Namosi Project: the Key

Only the Namosi project can catapultFiji to a different tier in developingcountries; project cost is >$2.0 Billion,and annual revenues of >$1.0 Billionper annum for 30-40 years!!

Newcrest is an ideal company, growingto become even larger! With market

cap of approx. USD$30 Billion

Size of Namosi project will challenge allstakeholders!


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Challenges for the Sector

Get the Policy and regulatory environment right!Learn from PNG!

Landowner issues are important, but should beplaced within an appropriate policy and regulatory

framework that is fair and transparent. Get projects to Feasibility Studystage soonest!

Focus on outcomes, but be aware of trade-offs

Govt has to work with companies and stakeholdersto realise this potential - partnership approach!

Strategic opportunity exists - time to act!


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Landowner issuescritical in Melanesia forALL stakeholders!

Source: www.nicholsoncartoons.com.au


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Opportunities for the Sector

Kick start sustained economic growth for thelong term

Economic multiplier possibly > 3x

Creation of supporting industries and

commerce Deepening of the Fijian Economy due to

sectoral synergies

Possibility of Mining Contribution to nationalpower requirements, eg geothermal energy

Further development of regional social andphysical infrastructure


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Concluding remarks

Mining sectoral expansion and growth iscritical to Fijis long term economic future

Mining sectoral growth though must bemanaged responsibly by all stakeholders

Just as there are many challenges facing themining sector in Fiji, there are also manyopportunities for sustained wealth creation


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End

The only way to discover the limits of the possible is to go

beyond them into the impossible. - Arthur C Clarke

When written in Chinese the word "crisis" is composed of twocharacters - one represents danger and the other represents

opportunity. ~ John F. Kennedy, address, 12 April 1959

fef - fiji mining sector - challenges opportunities - george niumataiwalu

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