Features

June

• Response to Turaga magazine request for info. on bauxite project

Please note the following as a response on question submitted by Mr. Earnest Heatly from Turaga magazine on bauxite project in Bua:

1. What sort of background does Xinfa Aurum have in the areas of mining and how long has this company been carrying out exploration work in the Vanua Levu area?
1. The licence for exploration was granted to Aurum, a local exploration company in 2001. Aurum have operated in Fiji for over 10 years.
2. b. Xinfa (full name - Chiping Xinfa Huaya Alumina Co. Ltd) entered the scene later in 2007 due to the demand for bauxite. The parent company based in China has a long tradition in sourcing and processing of aluminium. It is the largest private producer of alumina, the ore obtained from bauxite which when smelted, results in aluminium.
2. It is understood that bauxite mining was conducted several decades ago in Bua. Do you have any records to indicate when these initial mining works took place, the quantity of bauxite that was extracted, by whom and the reason why operations seized (ceased)?
1. Bauxite mining did indeed commence many years ago at Savulevu, Wainunu, Bua. Records indicate that Bauxite Fiji Ltd. (BFL) began mine development in 1969-72 but ceased operations in 1972 due to logistical problems (high rainfall and rugged terrain).
3. Specifically which area or areas in Bua are being targeted and from your understanding how large are the bauxite deposits and how much potential for mining does it hold?
1. At present, the target area is Nawailevu where around 700,000m3 or 900,000tonnes is the estimated potential.
4. Has Xinfa Aurum indicated how many locals are likely to be employed by this venture and what sort of jobs are likely to be on offer?
1. The total labor force will be around 50. Of this, 70-80% could potentially be locally recruited provided they meet the requirements of the jobs from geologists, mining equipment operators, maintenance crews and support staff (Stores, Lab., Clerical/Admin.).
5. What are some of the main guidelines that you are looking at maintaining in efforts to safeguard the interests of landowners, particularly in terms of the impact of mining on the surrounding environment?
1. The main legal guidelines are the existing laws being Environment Management Act 2005;Mining Act, Quarries Act, Public Health Act and the relevant subsidiary regulations that this activity will “cutacross”.
2. The Ministry encourages consultations frequently to have all stakeholders be aware of issues that may arise. This is exemplified by awareness campaigns, site visits etc including working together with NLTB and Dept. of Environment and also the rural local authority agents.
6. If an Environmental Impact Assessment report has been conducted, when will it be ready?
1. The EIA has been completed and the public review period expired on the 5th of June following an extension from 24th May 2010. A meeting to discuss all comments and submissions concerning the EIA was held on 18th June 2010 at Dept. of Environment with a view towards drafting conditions for inclusion in a tentative approval. However this would be subject to another round of consultations to address issues raised by a few landowners.
7. From your initial assessment, what sort of economic impact will the proposed mining have for the people of Bua?
1. At this stage, it is too early to state given the project has not reached final stages of cost determination. However, from employment, it appears that over $1M in gross salaries and wages annually would flow into those directly employed by the operation.
8. How closely has the Ministry been working with the Bua Provincial Council on this matter and what concerns if any, have been raised from this dialogue?
1. The Bua Provincial Council and NLTB have participated actively in meetings held at Nawailevu Village and other places as well. There have been discussions with majority of the landowners regarding the EIA as well as general information on nature of the project.
2. Issues raised by govt. agencies focus around the location and scale of activity, existing environment features (e.g. topsoil) and impacts from the activities as well as site specific technical issues related to quality and quantity of material for associated infrastructure.
9. What other areas, outside of Bua, have bauxite deposits and what efforts are being made to extract the mineral?
1. The most attractive bauxite deposits are in the Bua region and Aurum Exploration hold licences over these areas.
2. b. Exploration is on-going and studies must continue to determine the potential resources available for extraction. When sufficient details have been obtained, licence holders can then apply for a mining lease to extract the mineral following the legislated processes of obtaining EIA approval, rural authority zoning, surface lease consent before mining lease can be granted. Submitted as requested prior to release to Turaga magazine. Note pictures are also requested and are inserted for reference.
• Land as a source of wealth and economic success

Press Feature no:1/10-June 12-Fiji Focus

Land as a source of wealth and economic success

Throughout the world, governments continuously seek social stability and sustainable economic performance for their countries and their people. As a developing country, Fiji recognizes that there is an urgent need to review the framework for state land, in order to maximize utilization of land.

The Ministry of Lands & Mineral Resources, is therefore working closely with stakeholders to put into place an effective state land registration that will in turn ensure the better utilization of state land

Permanent Secretary for Lands and Mineral Resources, Lt Col Neumi Leweni said, “the review of the land framework should allow for the prevention of the under utilization of state land.”

“Good land registration would enable Government to clearly determine the best use of the land and get maximum returns from it,” Lt-Col Leweni added.

Additionally, the review of the state land register will give an impetus to investments in land in terms of agricultural production and will also provide a chance to native landowners to turn their assets in the form of land, into dynamic assets to be integrated in the market.

Government is mindful, that the inter-relationship of people and land is fundamental to human existence. Land must be productively used and sustainably managed to ensure increased contribution to economic productivity and commercial competitiveness. “Land enjoys a significant place among the assets owned by Government and it is for the wider benefit of the community that the Ministry of Land is now encouraging land owners to make their land available for productive use,” Lt Col Leweni said. He said, the Ministry is encouraging landowners interested in diverting their land to potentially large projects to come talk it over with authorities to ensure the optimum utilization of their land.

Drawing from Pillar 6 of the Peoples Charter for Change, Peace and Progress and aligned to the Roadmap for Democracy and Sustainable Development, government under the Ministry of Lands & Mineral Resources is focused on enhancing people’s opportunities to improve their quality of life and making more land available for productive and social use.

Ultimately the goal is to reform the economy and lay the foundation to increase investment and employment creation.

Subject to global pressures for development and improved living conditions as anywhere else, the Ministry of Land and Mineral Resources is attempting to manage the availability of state land for productive use by balancing the traditional and the westernstyle approaches to land tenure whilst at the same time contribute to a dynamic land reform in Fiji.

"Land is the place of all shelter, in the city, the town, the village and the home. It is the source of food, of materials for construction and manufacture, of coal, gas and oil, of springs and rivers and other essentials for life. Indestructible, immovable, it is the foundation of all human activity. Houses and factories, forests and farms, rivers, roads and railways, mines, quarries and reservoirs are all fashioned from the land. It offers endless opportunities for development and discovery. It is the ultimate source of wealth."(Based on Sir Charles Fortescue Brickdale 1913)

• Mining Hopes In Bua

MINING HOPES IN BUA

The Ministry of Lands and Mineral Resources is adamant that work on the Bauxite mining in Bua will soon get underway.

Permanent Secretary for Lands and Mineral Resources, Lt-Col Neumi Leweni has confirmed outstanding issues will soon be sorted out to ensure that the Bua bauxite mining is up and running.

With mining, being a vital part of the economy, and gold as the country’s second-largest individual export contributing around $26.7m in earnings in 2008, $41.0m in 2009 and an estimated $111.4m in 2010, Lt-Col Leweni says Government is keen to see the continuation of a strong mining industry in the country. This is in the context that well-managed mineral sector developments contribute positively to national growth and social welfare improvements for all Fiji’s citizen.

Government’s active support for mineral sector development includes the implementation of a number of macro-economic policies aimed at encouraging investment.

While Fiji’s mineral resources are mostly owned by the State - acting as steward for the Fijian people, Government will ensure regulatory mechanisms are designed in such a way that mineral development is carried out in an environmentally sensitive and socially acceptable way, with an equitable sharing of both the benefits and costs of mining between all stakeholders.

“We will also ensure companies who undertake mineral development projects are encouraged to develop a participatory and collaborative approach with local residents, particularly in the form of small business opportunities,” Lt-Col Leweni reiterated. In contrast to other countries in the region, land ownership in Fiji is clearly established, and there is an effective land management and administration system in place. “The state land register is currently being reviewed to enable Government to clearly determine the best use of the land and to get maximum returns from it,” Lt-Col Leweni reiterated.

In the past, land issues in the western Pacific have proved to be an insurmountable hurdle to mineral development. This is not the case in Fiji, where land is divided into three categories: Native land, State land and Freehold land. The challenge however for Bua, is for the harvesting and logging of pine plantations situated along the mining area.

“Once the pine plantation is cleared and logged, then we should expect the mine to be up and running,” Lt-Col Leweni explained.

Xinfa Aurum, a Chinese mining company is now interested and ready to commence work when all land issues is addressed. The bauxite extracted will be exported to China for processing

Silica and alumina, elements found in bauxite, are used for manufacturing aluminum. The project would be one of the major investments that could trigger greater developments in Bua. This would be very good for Bua as bauxite has also been found in the North West coast of Vanua Levu.

September

• Get the Facts on New Land Use Unit

Get the facts on the new Land Use Unit

The Permanent Secretary Lands Mineral Resources, Lt. Col Neumi Leweni speaks on the new Land Use Decree, the work of the Land Reform Unit and proposed the Land Bank.

Fiji Focus: Can you just state the role of the Ministry of Lands and Mineral Resources in as far as Government Services is concerned?

PSLMR: The Ministry of Lands & Mineral resource is among Government’s lead agencies that contribute directly  to the  nation’s socio-economic development. The Ministry facilitates the maximum utilization of all state land and enables the exploration and mining of mineral resources. It ensures that all land-use practices are conducted accordingly to environmental heat. Practice for a sustainable future.

Importantly, the Ministry’s note is to strike the right balance between the present future needs of resource owners, the needs of resource owners, the needs of investors and the overall needs of Government in ensuring a modern and progressive nation.

As of now, the Ministry is focusing on the Land reform initiative which will deal with the utilization of land especially both Crown and Native land. That is an area we are currently addressing through the establishment of the Land Reform Unit, which people will bring in their un-utilized land to ensure its maximum return to native landowners and Government as well.

Fiji Focus: This new initiative, part of it is the forming of that land bank unit. How would you facilitate for people who have native land bringing their land? What is the Land Use decree?

 PS LMR: As you know, Cabinet recently approved the Land use Decree 2010. This is to help utilized unused land better. The decree establishes a Land Use Unit within The Ministry and will be issuing leases for a period of 99 years.

The objective of the Decree is:

• To utilize designated native land in a manner that is in the best interest of native land owners
• To utilize designated crown land with a view to achieving optimal return to the State

The Government is concerned that a substantial amount of both native and crown land is not fully utilized to its maximum potential and the Decree is really to ensure maximum benefits for both land owners and Government will at all times take into consideration the wellbeing of landowners.

Given that the current land reform policy increases economic development, it is imperative that land is made available for utilization.

The existing laws pertaining to leasing of land both crown land and native land are considered to be cumbersome and bureaucratic and the long processes and the delay to finalize frustrates applicants and therefore reduces the development of the economy in general.

The Land Use Decree 2010 will provide the leasing of native land to the State and the State to lease it under a ‘head-lease’.

In that regard, the State will, at all times take into consideration the best interest of the landowners while leasing native land.

The Decree also provide for the leasing of all available crown land. The Decree further facilitates a fair return to the landowners and will also provide security of tenure.

The Land Bank will only receive land that does not have any commitment at all, in particular land which has been lying idle for some time. Land which has already been committed cannot be registered in the Land Bank.

If a native landowner brings in a piece of land, the Ministry will have to verify the ownership to ensure that whoever brings in the land is the real owner of the land through the Native Lands Commission (NLC).

If survey is needed the Land Use unit will facilitate as they have surveyors and valuers whose work is to survey land, to determine land boundaries.

The Ministry will have to submit to the Prime Minister all information regarding a piece of land and its intention. Once endorsed, it will be brought back to the Land Bank.

Once we enter that piece of land into the Land Bank, the Native Land Act (which NLTB uses) ceases any jurisdiction over this particular piece of land.

Fiji Focus: What about the other components on the state land, how are you administering the state land?

PS LMR: For the State Land, the Ministry has already identified land that could be utilized for specific areas like agriculture, commerce and in some cases islands that has crown land and could be utilized for hotel and other purposes for crown land to ensure maximum return to Government which does need much administration work compared to Native Land.

Fiji Focus:  Any indication of some areas that you are looking at right now in Vanua Levu, Viti Levu.

PSLMR: One of the islands in Vanua Levu has been brought by the owners and we’ve identified that it is a very good island for hotel and that’s specifically what the owners have mentioned to our officers in the Land Use unit who are currently working on it. It’s quite a big island and would be a good prospect for Tourism.

Fiji Focus: How soon can we expect this land bank that will be on the market for potential investors?

PSLMR: Right now we are working on updating the Ministry website which will assist us to market available land for potential investors from overseas.

The time line we are looking to get this up in running is the end of this month, which is two weeks from now.

Fiji Focus: So right now as far as the Land bank is concerned have you started issuing lands?

 PSLMR: The Land Bank is already in operation, so does its marketing. However, we need to beef up on our marketing in particular through the Internet.

The Land Bank office is in operation and the number of enquires continues to increase every day with people continuously visiting the office and indicating their preferences on what they want to invest in while our people will guide them along on the type of land they need.

 Fiji Focus: As far as the Native Land is concerned what are the responses from some of the native landowners?

PSLMR: The response has been very good. We’ve also identified some of the problems landowners faced in dealing with the Native Land Trust Board in the past.

An area of the Land Use Unit is to ensure that we provide the best service. Secondly, is the issue to do with the distribution of Lease money.  In this new Unit, the Land Bank will eliminate the top two who normally receive the cream of the lease money and that is the ‘Turaga ni Yavusa’ and the ‘Turaga ni Mataqali’.

In this case, the maximum benefit will be directed to the landowners themselves. As you know in the past, for Native land the ‘Turaga ni Yavusa’ and ‘Turaga ni Mataqali’ normally receives quite substantial amount of lease money and in most cases persons who are not members of the Mataqali also receive money.

Fiji Focus: You’ve been involved in collecting some land rents as far as state land is concerned how has been the response as far as collection is concerned.

PSLMR: The response has been very good. We’ve identified the problem with the past which is the enforcement aspect. There has been laxity in the enforcement whereby people need to be notified and be given notices on their arrears and collectors to actually go around informing lessees about their arrears.

When I joined the Ministry in May this year, state land arrears amounts to $22m.

The Ministry has sought assistance from the disciplinary forces to assist the Ministry in particular collecting rents. Just into the 2^nd week of operation we’ve collected around $2m in arrears and at the end of June, the Ministry has collected around $6m-so it’s actually the enforcement aspect of it that has been weak in the past and all we are doing  is to strengthen the enforcement a little bit.

Fiji Focus: Your team is also involved in resettling squatter settlements, what is the message that Government wants to give or say to the people concerned?

 PSLMR: The message to the people at large is to refrain from settling on crown land or any land that does not belong to them. It’s the same as the arrears enforcement. There is a law that enforces this and for anybody to go settle themselves on a piece of land that does not belong to them is a crime in itself.  This is an area that we are currently strengthened and we we’ll be pursuing people if they insist on doing it.

 Fiji Focus: What can you tell us regarding the squatter upgrading which I believe also involves the Ministry of Local Government, Urban Development and Housing?

 PSLMR: We have consulted with them and they have identified squatter settlements that are within the development plan of Government. So it is these squatter settlements that will be upgraded.

When I say upgraded I mean there will be surveyors coming in, families  will be allocated lots with provision of electricity and water. As for the ones that will not be upgraded this are the ones we are looking at relocating.

 Fiji Focus: How about the allocated lots. What is the process of this been done; I understand leases have been given to them.

PSLMR: That is a norm in any crown land, you will be given a lease and you will need to pay the sum that will be offered and you will need to pay your lease every year.

 Fiji Focus: How long are the leases going for?

 PSLMR: Lease agreement for crown lands most of the resident’s lots is 99 years so it’ll be on same line.

 Fiji Focus: Will the current price that expects to decrease will there be an increase as far as arrangements.

PSLMR: Well it will be worked out in the market value so the valuers will actually come in and look at the land but remember that government is mindful of the people living in these areas earning capabilities those are the considerations that government will be looking at.

 Fiji Focus: What will happen to the families that will be relocated?

 PSLMR: The reason this is happening because Government has plans for those land that is currently being used for squatters. And this will take place because Government wants to use that land for other purposes. The relocation will be done just like the ones for those who taken place before where government has planned for the e relocation.

As for the upgrades, blocks will be surveyed and allocated to the families and the reason is to discourage the family for squatting. Given that the trend in Squatter Settlements, where you have one family and there is an extended family and it goes on.

When there is an allocated land for a family, this is the only place where they can build and not anywhere else but within that land.

 Fiji Focus: Just regarding the Mineral Resources. I understand there has been a team set up to investigate some findings in this sector. Can you elaborate?

PSLMR:  Mineral speaks for itself. Mineral means gold and other minerals.Investigations are normal process try to identify where minerals are like Copper, magnesia, bauxite etc .They conduct explorations but mostly explorations are done by companies that come in requesting for license for any specific places

 Fiji Focus: What is the Government process in issuing license for potential investors and what is the response?

 PSLMR: On the exploration application process for foreign companies: obtain foreign investment certificate

B.Register local company, lodge an application with Mineral Resources Department with evidence of capital/technical capacity, provide work programme for exploration and to show evidence of landowner evidence

 C. Await the public objection period and approval from the Minister responsible

Mining: lodge an application for mining lease and provide supporting evidence includes: survey of the area, Environment Impact Assessment, feasibility study and the mine plan and to obtain approval from other relevant agencies-NLTB, TCP and also DOI and wait objection period.

 

Fiji Focus: What is the process to set-up an exploration site in Fiji now.

 PSLMR: Answer as above. There is a quite a few explorations already taking place- Namosi explorations are still ongoing.

Bauxite in Vanua Levu and there another on in Tailevu and right we are just waiting for the advertisements of exploration in Mount Kasi so there are a quite a few explorations on-going.

There is also water exploration and there are quite of few companies interested in bottling water and the mineral department looks after that area.

 Fiji Focus: What can you say about the review of the Mining act.

 PSLMR: There is a review ongoing by the AG chambers on the review of the mining act.

As it is now, in the Mining Act, any mineral that is found belongs to Government and the proceeds come directly to Government.

One of the reviews, which are spearheaded by the Minster, is for the landowners, or for the landowners to get the maximum benefit from it and that is the major change to this mining act.

 Fiji Focus: How soon do you think it will be?

 PSLMR: We are waiting for the AG's chambers to inform us on the Draft Act.

 Fiji Focus:  The Bottling Industry Issue. You mentioned about ground water policy? Please explain

PSLMR: Yes. The Ministry is currently developing a Groundwater resource policy to address this valuable resource which is considered as a mineral. The policy aims to address and strengthen the management and exploitation of groundwater resource in the country. This groundwater policy will set the platform for the proper management and preservation of this valuable resource. This will be the first groundwater resource policy.