‘15 Companies Could Close’
GOVERNMENT ACCUSED OF DOUBLE DIPPING, DIRECTIVE DEEMED A DETERENT FOR INVESTORS
Double dipping by the Government, the likelihood of 15 companies shutting down, and a pointless deterrant over a directive from the Department of Environment, were among concerns tabled with the Minister for Lands and Mineral Resources yesterday in Suva.
The Mining and Quarrying Council - which exists under tghe Fiji Commerce and Employers Federation - met with the Ministry of Mineral Resources yesterday to table a host of concerns that it said hindered development within the sector.
Led by council chairperson Harvey Probert, the council said 15 exploration companies that held 33 special prospecting licenses, would likely shut down operations because of capital difficulties.
In a letter addressed to the Minister for Lands and Environment, the council outlined five areas it felt needed addressing.
Pointless Deterrent: Environmental Impact Assessment versus Environmental Management Plan
The council claimed a directive from the Director of Environment’s office that all special prospecting licenses be approved on condition
that included a completed Environment Impact Assessment (EIA), was a “pointless” deterrent.
The council said the decision went against the previous practise directed by the Mineral Resources Department for an Environmental Management Plan (EMP).
A full EIA would require companies to pay at least a baseline of $60,000, the council said.
“It can easily go over a million of dollars based on activities undertaken on the ground, not including environmental bonds and overhead costs,” the council said.
“Each activity only has minimal impact on the environment, and can best be addressed with a robust EMP,” the council said.
Earlier, the Mineral Resources Department hailed junior operators for the significant role it played in the sector.
“Small exploration companies are essential for the mining sector in Fiji, as they have the potential to become large mining and exploration companies,” the council said.
“If the Department of Environment’s decision stays, in having EIAs for mineral exploration activities, investor confidence in Fiji would dwindle, the council said.
However, all mining activities, including quarry operations and gravel extractions, needed a full EIA report to assist in the granting of their relevant licenses, the council said.
Double dipping: Overarching Legislations on Environmental Bond
The Mining Act of 1965 and the Environmental Management Act of 2015 were not clear about payment of environmental bond, the council said.
The Mining Act of 1965 stipulated payment of the performance and environmental bond.
“MRD has constructed a performance and environmental bond matrix to allow the investor to understand the different levels of compensation they are paying under the performance and environmental bond,” the council said. “There have been instances in which MQC members pay both the performance and environmental
bond to MRD and DoE for the same area.”
The council described this as a case of double dipping by the Government.
“The Solicitor General’s Office in 2022 was informed of the issue, but its response seemed to lean towards entertaining payment of the same bond for the same area to the two regulatory bodies,” the council said.
“The MQC members recommend that this decision needs to be revisited again without any influence from any party.”
The council called for Government clarification over who the
Requests on approvals can take months to complete because the Director of Environment is territorial about her stance against the mining and quarry sector. Mining and Quarrying Council
performance and environmental bond must be paid to.
Prolonged approval processes
A delay in executing a process by government of approvals delays the acceleration of development for days and sometimes for months, the council said.
“One of our members recently lost a prominent investor which is recognized globally in the mining and exploration industry as result of these delays,” the council said.
“The result of the treatment it got from the Fiji Government if shared with other exploration companies internationally will be catastrophic for the mining sector in Fiji as most potential investors would be now have little or no confidence to invest in Fiji.”
The council said the sector was under reported, which resulted in low contributions to Fijis’ overall GDP.
Prohibition notices
The council recommended proper process of notifying members over prohibition notices.
It suggested frequent visitations and ongoing discussions with the Director Mines before prohibition notices are issued.
“It would be practicable that the Department of Environment provide scientific results before they roll out the prohibition notice,” the council said.
Relationship between MRD and DoE
The sector had suffered immensely through the differences between the Mineral Resources Department and the Director Environment, the council said.
“Requests on approvals can take months to complete because the Director of Environment is territorial about her stance against the mining and quarry sector,” the council said.
“Sometimes it seems the EIA approval is the primary approvals for all the operational stages in this sector. “
The bureaucratic red tape worked against the development the mining sector must stop, the council
said.
“Our individual environmental units within our companies are frontliners in having a social and environmentally-friendly platforms in all stages of developing our natural resources.”
The council urged the Mineral Resources Department and the Department of Environment to speak to communicate among themselves to save the sector from delayed development. SunBiz made several attempts to reach the Ministry of Mineral Resources and the Fiji Commerce and Employers Federation for comment.