Fiji Sun

‘15 Companies Could Close’

GOVERNMENT ACCUSED OF DOUBLE DIPPING, DIRECTIVE DEEMED A DETERENT FOR INVESTORS

- FREDERICA ELBOURNE

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.

 ?? Story on page 14 ?? Fiji Hotel and Tourism Associatio­n chief executive officer, Fantasha Lockington, with Munro Leys partner and committee chair, Richard Naidu, and Minister for Finance Biman Prasad, during the appointmen­t of a Fiscal Review Committee meeting in Suva, on March 7, 2023.
Story on page 14 Fiji Hotel and Tourism Associatio­n chief executive officer, Fantasha Lockington, with Munro Leys partner and committee chair, Richard Naidu, and Minister for Finance Biman Prasad, during the appointmen­t of a Fiscal Review Committee meeting in Suva, on March 7, 2023.
 ?? Photo: Frederica Elbourne ?? Mining and Quarrying Council chairman, Harvey Probert, with council member Robert Smith earlier this week in Suva.
Photo: Frederica Elbourne Mining and Quarrying Council chairman, Harvey Probert, with council member Robert Smith earlier this week in Suva.

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