Business and Development

Another Government helping hand for Fiji's ailing gold industry

In an effort to extend at least tem porarily the life of the gold town at Vatukoula, the Fiji Government has agreed to further subsidise the finan cially-ailing Emperor Gold Mining Co. to the tune of a $450,000 loan, free of interest and repayable over a period of six years.

Government will also make a grant of $150,000 to the company, to en able it to extend the Borthwick Shaft and to carry out developmental work involved in the extension.

As a positive move towards pro viding alternative employment for miners faced with redundancy, a 120acre industrial estate is to be de veloped at Vatukoula. Special incen tives will be devised in order to make the area attractive to industrialists.

In announcing the new plans in March, the Prime Minister, Ratu Sir Kamisese Mara, revealed that with out government intervention the com pany would have been obliged to lay off between 400 and 900 workers at the mines.

“The effect of the agreement is to secure continuity of employment for the existing labour force either at the mines or in other industries at Vatu koula or elsewhere”, he said. “The company has agreed to give to gov ernment, free of cost, a portion of its land at Vatukoula suitable for the creation of an industrial estate.

“The total area to be allocated to the estate is 120 acres, out of which the company will retain one-fifth to enable it to pursue its policy of diversification of its activities and in vestment”.

The interest-free loan had been de cided upon in order to “assist the company in improving its overall liquidity”.

“This loan, as with the balance out standing from previous advances made to the company, will be fully secured”, he said. He added that the balance to be repaid from previous loans was abput $BOO,OOO.

The Prime Minister said that the Borthwick Shaft “showed promise”,

but further exploration was necessary to establish its potential. “With the extension of the shaft there is reason for hope—but not certainty—that the life of the Vatukoula mine may be measurably extended”, he said.

“The company considers that a sub stantial increase in the price of gold would prolong the life of the mine much more. Regardless of these fac tors, government is looking ahead to the time when the mine will close, as all mines ultimately must do”.

The Prime Minister said industries suitable for establishment at Vatu koula included timber milling and processing, the use of gravel from the mine, concrete manufacturing and the manufacturing of drains and pipes.

There was good reading and good power at Vatukoula, he pointed out.

Taking into account the new incen tives, which were still to be decided in detail, the area was an attractive one for industrial investment.

Commenting on a trade union call for the establishment of a minimum national wage in Fiji, the Prime Minister said such a move did not seem practical at a time when there was not full employment.

“The wage-earning population is not even 50.000, out of the total population of 500,000”, he pointed out.

The move for a minimum national wage was urged by the Fiji Trades Union Congress annual conference, held at Vatukoula. The conference also approved a resolution calling for Fiji membership of the International Labour Organisation.