Fiji Labour Party Questions $200M Vatukoula Mining Deal

The Fiji Labour Party has raised serious concerns over the government’s newly signed $200 million framework agreement with Chinese investors at Vatukoula Gold Mines, calling for full transparency on the terms of the deal and its implications for the country.

In a statement on Wednesday, Labour Leader Mahendra Chaudhry said the agreement — signed between the Ministry of Mineral Resources and the Shandong Zhaoqing Group, majority shareholders in Vatukoula Gold Mines Ltd (VGML) — lacks clarity on the scope of the proposed “upgrading of mining facilities” and raises significant issues of accountability.

“The Fijian people deserve to know the details of the $200 million deal… including the impact such an agreement will have on local employment, environmental safeguards and revenue sharing,” Chaudhry said.

The concerns come in the wake of growing discontent from the ten Tikina of Ba, who have expressed dissatisfaction over the lack of consultation and information regarding mineral exploration activities on their land.

Chaudhry said Labour is particularly alarmed at the shift in VGML’s operations from refining gold dore in Fiji to exporting all of its 6,000 tonnes of annual gold concentrate production to China.

He said this outsourcing of refining has potentially significant economic costs.

“At a conservative 1% gold content, this equates to 60 tonnes of gold annually, potentially worth USD $5.8 billion. If the gold content is 5%, the value could reach USD $29 billion,” Chaudhry said.

The party also reiterated its earlier concerns raised in February regarding the export of 800 tonnes of gold concentrate to China, allegedly without any independent verification of its gold content or transparency on the proceeds.

“These concerns remain unanswered today,” said Chaudhry. “We have received no response from the Reserve Bank of Fiji, the Mineral Resources Ministry, or VGML.”

He further questioned the Ministry’s authority to enter into an agreement of such magnitude without Parliamentary approval, asking, “What right does the Minister for Mineral Resources have to conclude unilateral deals involving our natural resources with foreign companies?”

The Labour Party has pledged its support to landowners in Ba and says it will continue to pursue answers and accountability from the government on the matter.