Part-Solve Problem

Govt. Concessions Only Part-Solve Problem

Fiji Mining

THERE is a possibility that the associated gold mining companics operating at Vatukoula, in Fiji, may withdraw, unless: • They find the necessary capital to recover the gold from the deeper lodes (see May PIM, p. 49); and • There is better work from thp mine labour . .. . . , This threat to close comes in spite of the recent proposal by the Governor (Sir Ronald Garvey) (May

PIM) to exempt the companies from income tax and gold royalty for five years.

The Government has agreed to taxation concessions, but these will be effective only if the companies earn profits.

Obviously more capital is needed to win the gold from the lower levels (where research in recent years has revealed large lodes of ore) be cause it is there more expensive to recover.

Where to raise the necessary capital has posed a problem. The chief general manager, Mr. N. E.

Nilsen, has gone to America to try to interest investors. Anything which would attract Australian in vestors —such as a subsidy from

Fiji Government—p roba b 1 y d be welcomed. is indicated that the Fiji Gov ent may have to interest itself ely in the problems the com ss are now facing. t gold enterprises are too im nt to Fiji’s economy to be ed to lapse, if only because is nothing in sight within the few years to take their place, ►ut ten of the £lBh millions that ompany has earned from gold silver in the last 20-odd years ;one back into the Colony as wages, etc. i companies’ programme of J expansion in the next five will require nearly £1,000,000. far as the question of labour cerned, the companies appear ieve that they are not getting ime output per man now as vere five years ago. This may a harder problem to solve that of capita I—unless a r degree of mechanisation can roduced. i T. W. T. Vuiyasawa has been ited a councillor of the Suva Jouncil for one year. He fills mcy caused by the resigna : the Rev. Mikaele Dreu, who go to the United States for r studies.