Gold production improves as resource sector declines

VATUKOULA Gold Mine’s production improved significantly this year compared with last year, with the Reserve Bank of Fiji reporting a 33 per cent increase in annual gold production for the year ended January, 2024 in its February Economic Review released last week.

However, longstanding “industry-specific issues” continue to affect production in Fiji’s natural resource sectors, with double digit percentage declines in pinewood and mineral water.

“Pinewood (-48.5 per cent) and mineral water (-27.6 per cent) production dropped in January (year-on-year basis) when compared to the previous year. However, gold (33.1 per cent) and electricity (3.9 per cent) production improved.”

Vatukoula’s gold production has been on the decline in recent years, with yearly figures reflecting the negative growth. However, annual production up to January 2024 year end was a first significant improvement for the company in years.

Data for cane and sugar production, woodchip, sawn timber and mahogany – Fiji’s main export commodities from the resource sectors – were not available for the month but have also been declining.

Meanwhile, tourism and consumption continued to prop up the economy.

“Performance in the tourism sector was better-than-expected as visitor arrivals increased over the year by 4.2 per cent, totalling 70,324 in January, the highest arrivals on record for January.

“Notably, the number of Australian tourists, Fiji’s biggest market, fell by 7.1 per cent from the same month a year ago,” RBF stated.

However, gold (33.1 per cent) and electricity (3.9 per cent) production improved – Reserve Bank of Fiji