Fef - Fiji Mining Sector - Challenges Opportunities - George Niumataiwalu
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Transcript of Fef - Fiji Mining Sector - Challenges Opportunities - George Niumataiwalu
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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