Pacific Briefing - Fiji-Noumea Opportunities for Mining Equipment Technology Services Companies....

8/3/2019 Pacific Briefing - Fiji-Noumea Opportunities for Mining Equipment Technology Services Companies. Austrade 080911

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AIMEX September 2011

Pacific Briefing- Fiji/Noumea


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At a Glance

115 offices around the world in 60 countries

Federal Government and part of the Foreign Affairs andTrade Portfolio

We reduce the time, risk and cost of internationalising your

business

consulting/advisory

grants

Typically we assist around 15,000 companies each yearand in 2009-10 that translated to around AUD27b worth ofbusiness


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AUSTRADE SUVAs TERRITORY


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Australia/Fiji the big picture

Strong commercial and people to people links

Shared geography, language and Commonwealth history

50,000 Fijians live and work in Australia

Approximately 300,000 Australians visit Fiji each year

Australia is Fijis key trading and commercial partner in

the region


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State Of Play-Fiji

Economic and political headwinds- Bilateral relationships strained

Life goes on Australia remains a supplier of choice.

Key industries Tourism/Tourism/Tourism

Sugar/garments/water and mining are key 2nd tier industries.

Decrees and investment


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Fiji in Numbers Reserve Bank of Fiji (RBF) forecast GDP growth for

2011 of 2.7% (was1.3% initially)

Latest RBF inflation forecast in 2011 7% (Budget forecast 4%)

Budget deficit forecast is 3.6% GDP 2011 (total governmentdebt as a % of GDP forecast as 58% in 2011 plus an additional 33% contingentliabilities. This excludes additional borrowings in recent bond issue.)

Foreign reserves FJD1.5b (5 months import cover)

Sectors of note:1. Tourism visitor arrivals were 632,000 pax in 2010 Government wereforecasting 663,000 in 20112. Sugar production has been revised upwards to 170,000ts 20113. Fiji gold exports projected to be 70,000 oz FJD181m in 2011


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Australia/New Caledonia the big picture

Developing commercial and people to people links

250,000 pax: 35% European, 40% Melanesia, 15% Wallis andFutuna

French linkages paramount but evolving. Euro1.25b is French

contribution to NCs budget p.a,

Australian share of imports @ 10%, 1826 Australian companiesexport goods to New Caledonia ($345m)

Approximately 100,000 Australians visit NC each year predominantlyvia cruise ship

Australia is emerging as a significant key trading and commercialpartner in the region especially in the period leading up to thedecolonisation vote 2014-2018


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New Caledonia State of Play Forecast GDP growth for 2011 lower than the +3.4% pa

observed over the past decade.

Greater GDP per capita than NZ

Latest inflation forecast in 2011 2%

Highly protected market. 30% of NC govt revenue fromduties

45% of goods from Europe and 51% of services Key sectors:

1. Mining

2. Aquaculture

3. Tourism


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Mining Sector Overview-New Caledonia

New Caledonias major industry 25% of worlds known nickelreserves

Secondary focus on gold / copper / chromium

3 major miners:

SLN 130 yrs old part of Eramet group. Processing based in Noumea Goro or Vale INCO. Based in the South of NC. Project total amount

USD 1.9 billion. Due to be operational by end of 2011. process issues

Koniambo Nickel USD5b project. 76% complete (power-plant,metallurgical processor). Due to commence operation late 2012. Ownedby North Province and Xstrata. 25 yrs + life and 60,000ts p.a nickel

Interest in seabed mining is growing


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Mining Sector Overview-Fiji

Very small industry sector relative to PNG/New Caledonia

Focus is primarily on gold / copper

Predominately in exploration phase currently

49 exploration licences issued and 37 pending (equates to 576,146hectares)

Actual issued surface leases are 3 Vatukoula (VGM), Bua (XinfaAurum) and Wainevesi (Asia Pacific Resources)

Interest in seabed mining is growing

Fiji is currently reviewing its Mining Act


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Projects of NoteProjectand Yr

Developer Location Production Potential Status

WainevesiGold(2010)

Asia PacificResources

Wainevesi,Tailevu

250,000t ore p.a 5 yrmine life. 5,000 ozgold and zincexpected 2011-12

Small scale production.50 year surface lease.

Mt Kazi

(2013-14)

Newcrest Wailevu

(VanuaLevu)

240,000 oz gold

reserves. 7-10 yearmine life.

NML seeking mining

lease

Tuvatu(2013)

Lion One SabetoLautoka

Exploration underway.Gold and silver.10+ years mine life.

Phase 1 explorationworks

BuaBauxite(2011)

XinfaAurum

Nawailevu(VanuaLevu)

1,000,000ts of bauxiteore.2-5 year mine life

Mining license issuedMay 2011. Buildinginfrastructure currently

NamosiJV(2014-15)

Newcrest,Mitsubishiand Nitetsu

Namosi Tbc. Gold /copper30+ years mine life

Feasibility stage.Expected initialinvestment USD1b.


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Projects of NoteProjectand Yr

Developer Location Production Potential Status

Viti(2011-12)

Viti Mining Btw NadiandSigatoka

Ore reserve 0.13m tsmanganese

Surface lease pending.Also have a small minein the name of Finemetals in Vunamoli

Vatukoula

(recommencedin 2009-10)

River

Diamonds

Vatukoula 60,000oz gold

expected in 201110+ years mine life

Operational mine

Faddys(2014)

GeopacificResources

Nabila Est 920,000t @ 4.9g/tAu (144,000 ouncesof contained gold) 7-

10 years mine life

Exploration phase

Ba RiverDelta(2012-13)

AmexResources

Ba Est 220m t iron sandsmagnetite. 20 yearsmine life.

Exploration phase

Seabed Nautilus N TonganTrench &NW of VL

As yet unknownGold, copper, silver,zinc

Exploration licensesissued-14 licences60,000 sq km

G l i l M f Fiji


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Geological Map of Fiji


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Supply Opportunities

Fiji Exploration related services and equipment

Second hand equipment

Legal advice re drafting mining legislation

Environmental Impact Analysis mine site experience

Filling significant skills gaps due to experienced labour going to PNG

New Caledonia SLN has a USD500m repairs and maintenance budget,

environmental solutions due to Noumea location. Goro is in testing/requalification phase due to acid spill

KNS in building /ramp up phase

Pacific Briefing - Fiji-Noumea Opportunities for Mining Equipment Technology Services Companies....

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