Thursday, June 16, 2011

COMMENTS ON THE NAWAILEVU BAUXITE MINE EIA by George Niumataiwalu



COMMENTS ON THE NAWAILEVU BAUXITE MINE EIA
These comments are given in response to the public feedback on the above as required by
statute, and in the interests of responsible and sustainable mining practices in Fiji. It is based
on a cursory appraisal of the EIA document at the Department of Environment on
13/05/2010

1. The Weipa project in North Queensland, the Jamaican bauxite mining industry and even
the infamous Guinea project in Africa, are key projects that this project can learn and
benefit from, particularly with regards to impacts over the long term. In this context, a
few lessons could be learnt from all these three projects, but particularly in Jamaica where
the environmental conditions are similar to those in Fiji:

a. The Jamaican operation is huge by Fiji standards, and at one time, was the 3rd largest
bauxite/alumina producer in the world. It also is the greatest cause of de-forestation
in Jamaica, causing all kinds of ecological problems that have impacted on land-use,
rehabilitation and the negative impacts on the hydrology of the areas impacted. It has
also caused dislocation of communities that have to be relocated due to the land area
requirements of bauxite mining operations.

b. Unlike the Nawailevu project, processing is done in all these countries – the key
factor in all environmental negative impacts in these countries. These negative
impacts have included: the use of large areas for tailings dam retention, that become
un-usable thereafter; huge dust problems – the so-called “red dust” that just about
covers everything on these sites; sodium precipitation in waterways and
underground water; and a caustic soda enrichment due to the use of caustic soda in
the separation process from bauxite to alumina; and high erosion and poor water
retention of soils after bauxite is mined out.

c. In Jamaica, there is even some scientific evidence that the result of deforestation and
slow re-forestation or re-vegetation, has led to much drier and hotter soils. This is
the same phenomena in Nauru where phosphate removed has revealed the limestone
bed rock that is now exposed and heated up by the sun – causing any rain clouds to
be pushed over the island, thus making it drier still.

d. Social and economic problems have persisted, particularly in Jamaica and Guinea,
where the economic benefits to the state have outweighed any community or
environmental concerns. As a result of undue political and governmental pressure,
these operations have been poorly regulated for compliance and so the local
community suffers at the expense of the national economy.

2. The project’s areal footprint is actually quite small at approximately 30ha compared to
other bauxite mines in the world. This also minimizes environmental negative impacts in
the first instance than otherwise, but since the company has applied for a far greater area
to be under license, the question to be asked is: is this only a pre-cursor to a larger mining
project to follow this first stage? If so, then the EIA has to be viewed in the context of
several years of mining operations rather than one year of operation as inferred in the
report. This enforces a much stricter and detailed characterization of both the biophysical
and biochemical environments, including a more detailed understanding of the region’s
hydrological cycle and how it impacts on the operations. The other corollary to this is
that a larger operation at a later stage could lead to onshore processing, particularly if
lower grades are found compared to the relatively high grades in the proposed 1 year
mine. This could then lead to the problems currently faced in Jamaica as alluded to
above.

3. The project dodges all the key negative impacts associated with the processing of the
bauxite into alumina on site. This is a major benefit for the project in relation to
environmental impacts, since most of the environmental problems in Jamaica’s bauxite
mining industry are mitigated against in the first instance, including: the need for tailings
dams, the use of what could have been arable land for tailings dam storage, and the
possible contamination of surface and underground water from the processing stage, that
has seen increased levels of sodium being precipitated into waterways in Jamaica, that
some have linked to the increase in hyper-tension.

4. Hydrology is a key element of this report, given its importance and linkage to erosion,
siltation and to the contamination/toxicity effects of the project on water. Hydrological
characterization though seems to be lacking to fully account for say 1 in 50 year rainfall
events, or extreme coastal flooding to then test the structures that are planned for the
operation. These standardized disaster scenarios for especially bunds, tailings dams,
drainage networks and siltation traps, are standard practice in high rainfall areas. An
example is that a 1 in 40 year rainfall event allowed the tailings dams to overflow at Mt.
Kasi, forcing the mine to close due to the ensuing environmental damage on both the
riverine and coastal/reefal environments. A properly characterized hydrological system
should then dictate:

a. The proper design of all bunds and siltation traps – indicating method and
material of construction, and dimensions;

b. Define the drainage catchment of the areas surrounding the mine site, and
therefore propose a system of drains that will link up to the siltation traps. These
drains should include diversion drains to minimize the impact of surface runoff;
and also feeder drains to feed the siltation traps, and even including finger drains
where needed;

c. Define the impact of coastal flooding in a 1 in 100 year event (or such time frame
as deemed applicable) to test the design of the two siltation traps and bunding on
the stockpile site, since this is connected to a marine environment that is used for
food and subsistence;

d. It should then determine the seasonal abstraction levels of water used by the
operation from the river systems, and also infer the dilution factors for any
discharges to these river systems for any waste discharges.

5. The characterization of the biochemical environment could also be improved upon due to
the lack of temporal data, although there has been a lot of evidence provided for the
biophysical. This is particularly important for mitigating against extreme events and the
mitigation strategies involved. This will also allow continuing monitoring of a range of
metals, TSSs and water clarity during and after the operation has seized; to properly
determine background levels. I did not identify the use of control sites given that this area
has already been damaged by pine logging and subsequent erosion, but this could be my
own oversight.

6. There seems to be a heavy reliance on the EMP, OEMP, CEMP, QMP and TMP to fully
address the issues raised in the EIA. This means a greater reliance on the company to
derive the appropriate mitigative measures for minimizing or alleviating the negative
environmental impacts of these activities. This is where regulatory control can be
properly administered, and where monitoring is crucial. Many EIAs that have been well
documented and researched, have actually failed during implementation and primarily
due to the lack of focus and commitment made to these management protocols. But again,
these can only be properly formulated if all the environmental impacts have been properly
characterized and understood prior to permitting.

7. On the socio-economic impacts, there is no discussion on regional economic impacts, that
is critical to such remote sites undergoing resource development. Rather than focus on the
primary community impacted by the operations, the report does not indicate regional
economic impacts, flows and even economic multiplier effects that are sought after in any
remote site development.

8. A compensation package should be carefully linked to the EIA, since it should highlight
how and what is to be compensated for when damage is incurred. So should the
calculation of environmental bonds to cover any rehabilitation or remedial work should
the operator abandon operations. I did not see evidence of the basis for the derivation of
the $250,000 bond suggested.

9. The SIA component of the report should have highlighted in more detail a social
cost:benefit analysis of the project to then bring all the socio-economic impacts to bear.
Without this framework, it is difficult to ascertain long term and regional impacts of the
project. This is particularly important in the area of improving community welfare as a
result of such developments, and is a key consideration inn the assessment of sustainable
development outcomes in the development of a diminishing natural resource typical in
mining. The cost:benefit analysis should also show economic flows and even infer
economic multiplier effects in ascertaining whether such development will improve the
community’s welfare or not.

10. Given the importance of landowner issues (example, current issues at Namosi prospect
that is now holding up this multi-billion dollar project if developed), there seems to be
very little focus on this area. Issues to do with land ownership, vanua structures, and the
chiefly system involved are all key aspects of ensuring landowner support over the life of
the mine, and beyond. This should also include a conflict resolution platform, and the
involvement of NLTB as trustees of native landowners.

11. Overall, I think the EIA has been well compiled and researched. I was pretty impressed
with the consultation process with stakeholders. The key now is to develop the permitting
and monitoring protocols that will ensure that these impacts are properly managed on site
as alluded to in the EIA, and that the project is actually beneficial to the community.
GN, 13/05/2010

Monday, June 6, 2011

Mr Sukanaivalu - Address at the Handing Over of the Nawailevu Bauxite Site Surface lease


Mr Netani Sukanaivalu MINISTER  FOR LANDS AND MINERAL RESOURCES OPENING ADDRESS AT THE HANDING OVER OF THE NAWAILEVU BAUXITE SITE SURFACE LEASE
Venue: Nawailevu, Bua   -  25th February, 2010­­­­­­­­­­­­­
  • The Commissioner Northern Division;
  • Representatives of His  Excellency the Ambassador of China to Fiji;
  • The Director of Aurum Exploration (Fiji) Limited;
  • The Turaga ni Mataqali and vanua of Naicobo, Noro, Nalutu, Buli Navakasiga and Buli Lekutu;
  • The Permanent Secretary and officials of the Ministry of Lands and Mineral Resources;
  • Distinguished Guests;
  • Ladies and gentlemen,
I am extremely pleased to be here on this historic occasion to celebrate with you all the issuance of the surface leases to Aurum Exploration (Fiji) Limited.
I say that this is a historic occasion for a number of reasons:
The first is that we are now witnessing the issuance of the first set of leases under the Land Use Decree 2010 and the Land Use Regulations 2011. Many of you may be aware that the Land Use Decree emanated from Government’s Land Reform initiative where the intention is to maximize the use of idle and under-productive land for economic and social purposes.
Government’s Land Reform initiative is also meant to address some of the long-standing issues which include but are not limited to the need to ensure that landowners get fair returns for the use of their land and tenants get security of tenure. The leases that are being issued today will achieve exactly what Government intended.
The landowners will get returns that are based on a fair market value and on the best principles and practices of valuation. The monies they will receive cover a wide range of areas from compensation for the loss of fishing rights and royalty, to other benefits such as employment opportunities as well as the chance to be engaged in providing food and catering and transportation for the Mine.
Aurum Exploration (Fiji) Limited, on the other hand, will through these leases, secure unhindered access to the land for the duration of the term of the leases.
A significant point to note is that Aurum Explorations (Fiji) Limited will effectively become Fiji’s first Bauxite Mining Company. This is historic for Fiji as it will now expand the exploration and mining of mineral resources from what used to be restricted to just a few natural resources like gold and copper.   
At this juncture, it is my pleasant duty to convey to Aurum Explorations (Fiji) Limited the Government of Fiji’s sincere appreciation for your confidence in Fiji.
I understand that you have been exploring in Fiji for several years and you are now moving to the next level which is mining. I have no doubt that you will be able to achieve your targets as soon as the Mining Leases are issued to you in the next few weeks.
I am particularly grateful for the manner in which you have negotiated with Government officials and the landowners. I am advised by the Permanent Secretary for Lands and Mineral resources that the negotiations were done in very good faith. Please accept Fiji’s sincere appreciation.
I also wish to extend the Government of Fiji’s profound gratitude to the Government of the People’s Republic of China. Our gratitude is based on the sincerity of China’s friendship with Fiji.
I know that it would be very challenging for companies to conduct business in a foreign land if they do not have or are not supported by their respective Government representatives.
The fact that Aurum Explorations (Fiji) Limited and several other investors from China have now established themselves in Fiji is testament to the very able support and encouragement they have received from you’re His Excellency and the Embassy officials in Suva.
This support serves to strengthen the political, cultural and socio-economic relations between our two countries. The people of both China and Fiji will undoubtedly be the main beneficiaries of such alliance. For this, I wish to convey my personal gratitude and that of the Prime Minister Commodore Voreqe Bainimarama as well as the gratitude of the people of Fiji for your support.
Ladies and gentlemen, today I also wish to extend our collective appreciation to the all the Chiefs and landowners of the respective lands that will now become the focus of Fiji and the world.  
The landowners in Fiji have long been the disadvantaged party as they have not been getting fair returns for the use of their land. This will now change with the arrangements currently in place and the landowners will now reap the benefits from the use of their lands.
I have been reliably advised that you have all come to the negotiation table with an open mind and with good hearts. This venture will not be possible without your faith and confidence in Government and in the company.
The Prime Minister is extremely pleased with the outcome of the negotiations and especially your goodwill.
Ladies and gentlemen, I know that a few other stakeholders were involved in charting our path to where we are today. I mention in particular the Commissioner Northern Division and his officials and the Roko Tui Bua and his staff, among other stakeholders.
I need not mention that the support you have all demonstrated is very important for the people of Bua in the same way that it is very important for the entire community in the Northen Division and for Fiji as a whole.
The fact that the negotiations have been concluded in a span of just a few months reflects very well on your leadership and capabilities.
This is the type of drive that Government wants because it will serve to strengthen the Government’s focus on its “Look North Policy” that is aimed at generating greater economic returns in the North.
Ladies and gentlemen, we are here today to celebrate such a momentous occasion and I do not intend to hold us back any longer. Suffice to say that the Government of Fiji is very appreciative of all your collective efforts and wishes you all every success in this venture and in other areas that we will be working together on.
Vinaka vakalevu.
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PM Bainimarama - Address at the Official Handing-over of Nawailevu Bauxite Mining Lease


COMMODORE JOSAIA VOREQE BAINIMARAMA, CF(Mil), OStJ, MSD, jssc, psc

Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics, Public Service, Peoples Charter for Change and Progress, Information, i-Taukei Affairs, Provincial Development, Multi-Ethnic Affairs, Sugar Industry, Lands and Mineral Resources
Address at the Official Handing-Over of Nawailevu Bauxite Mining Lease
______________________________________________________________________________
Banyan Room                                                                                                                                   Fri. 13th May, 2011
Holiday Inn, SUVA                                                                                                                          1200 Hours

Cabinet Ministers;
Your Excellency Dr. Han, the Ambassador of the People’s
Republic of China;
Executives of Aurum (Fiji) Limited;
Ladies and Gentlemen.

Bula vinaka and a Good Afternoon.
Earlier this year, the Ministry of Lands & Mineral Resources issued the first surface lease to Aurum Explorations (Fiji) Limited at Nawailevu under the Land Use Bank.
Today, Aurum is being issued its licence to commence mining for bauxite.
This occasion is significant and indeed a milestone for a number of reasons. The issuance of a surface lease under the Land Use Bank has meant that the landowners will receive a higher return for the lease of their lands than what they would have received through the iTaukei Lands Trust Board. In addition, the investor is assured of a secure tenure through a simplified land leasing arrangement.
The grant of the Mining Lease heralds the beginning of a large-scale bauxite mining in Fiji. It is projected that this mine will provide significant returns not just to Aurum, but to the Fijian economy as a whole.
My Government, as you are aware, is focussed on developing the North and the commencement of this mining operation will contribute to that stimulus and initiative.
The mining sector has the potential to significantly increase not just Government revenue but also increase our GDP. It has the potential to provide increased employment opportunities, upskilling and provide spin-off investment opportunities.
However, the issuance of mining licences must be through a modern regulatory and transparent system. Through such a process of ensuring the best investor, the Mining Industry can equal our other traditional revenue earners such as tourism and sugar.
I look forward to Aurum becoming a partner with Government to bring mutual benefits to both parties, and also becoming a good corporate citizen. I also acknowledge the assistance and facilitation provided by the Chinese Government, in particular through the tireless efforts of His Excellency, Ambassador Dr. Han.
I take this opportunity to once again reiterate my Government’s commitment to providing a transparent and efficient investment platform and environment for the benefit of foreign and local investors, and all Fijians.
Vinaka vakalevu.
___________________

$5M loyalty for Bua from bauxite mining

May 13, 2011 03:45:09 PM

The Aurum Exploration Fiji Limited Company is expected to export one million tonnes of bauxite minerals in its first two years worth around USD$20 million.

This would also bring FJD$5m of loyalty and lease income for Fiji as well as jobs for the local people of Nawailevu, Bua.

Chinese Ambassador to Fiji Dr Han Zhiqiang made the comments at the awarding of the Bauxite Mining lease to the company.

In handing the mining license to Aurum, Prime Minister and Minister for Land & Mineral Resources, Commodore Voreqe Bainimarama said the mine would provide significant returns for the people of Fiji.

“The mining industry has the potential to equal our sugar industry and tourism sector.”

He also said the lease of the land under the 2010 land use decree and 2011 Land use Regulations would provide more benefits to both the land owners and the mining company.

Also Dr Han Zhiqiang said the signing of the lease would be beneficial for Fiji.

“The successful startup of Xinfua Bauxite project has just proved to be a win-win example of bilateral cooperation.”

“It will not only bring a steady flow of raw material for Xinfa, but will also generate enormous benefit for the people of Fiji.”

He said they would commit to working with the government and the local people.

“In receiving the mining license today, we wish to say here that we take very seriously the trust and confidence of your government.”

“We will ensure that we will do things according to the requirements set out by the government and that we will involve the landowners in whatever way we can.

Meanwhile Basilio Vanuaca of the mining company added that the land owners would benefit as the company planned to build a 600m jetty and also widen and develop the local roads for use by the mine.

He added the soil containing bauxite would be shipped overseas for refining as Fiji did not have the capacity to extract the bauxite from the soil.

By Tevita Vuibau
http://www.fijitimes.com/story.aspx?id=171267

Road opens up to bauxite mining site


Road opens up to bauxite mining site

By TIMOCI VULA
Wednesday, June 01, 2011
LAND-clearing and road construction works at the bauxite mining site at Nawailevu in Bua are progressing well, says Aurum Exploration (Fiji) Limited manager Sang Lei.
Mr Lei said the company was focused on completing the road to the proposed site.
So far, the contractor hired by Aurum Exploration has completed the construction of a bridge inland.
"We had wanted to complete the road but there has been too much rain this year," Mr Lei said.
Mr Lei said the company received its licence to mine bauxite in the area two weeks ago.
"Our machines are coming, they should be in the country in the next few months," he told reporters who visited the site on Monday.
No locals have been employed at this stage but Mr Lei said 150 would be taken on board when operations start.
He said an environment impact assessment was approved and that Aurum Explorations received its licence on May 13.
Mr Lei earlier said mining would start on 30 hectares of land although the licence allowed mining on 130 hectares.
"This is historic for Fiji as it will now expand the exploration and mining of mineral resources from what used to be restricted to just a few natural resources like gold and copper," a statement from the Ministry of Lands said.
Mining is scheduled to start in six months.

Bauxite mining by Chinese firm in Fiji halted


The reсent typhoid outbreak in Vanua Levu has halted the bauxite mining by a Chinese сompany in Fiji’s Bua area, aссording to a manager of the сompany on Monday.
Human Resourсes Manager for Aurum Exploration Fiji Limited, Basilio Vanuaсa, told media that Fiji’s Health Ministry has asked them to evaсuate the area and to wait for further notiсe, adding loсal authorities will direсt them as to when they сould go baсk to the site in Nawailevu.
The typhoid outbreak in Bua saw a total of 41 сases reported and a publiс health emergenсy deсlared, loсal media reported on Monday.
Bauxite is an aluminium ore and is the main provider of aluminium.
The Aurum Exploration Fiji Limited сompany is expeсted to export one million tons of bauxite minerals in the first two years worth around 35 million Fiji dollars ($20 million) .
Loсal media says the suссessful startup of the bauxite projeсt has just proved to be a win-win example of bilateral сooperation between Fiji and China. – Xinhua

Bauxite Mining in Vanua Levu

This Blog is a central collection point for information in regards to the Bauxite Mining in Vanua Levu.  Over the coming weeks and years,  we hope to collect and present information specifically on the extraction of Bauxite from Vanua Levu.  We will also like to document the progress and issues relating to the Mataqalis who have sacrificed their land for the greater good of Fiji.

To start if off here are a few Press Releases.

Mataqali Nalutu receives payment for bauxite lease

The Ministry of Lands and Mineral Resources continued issuing land lease documents today as government progresses plans for bauxite mining in Bua.
At Lovonidalo settlement in the district of Navakasiga, minister Netani Sukanaivalu presented another set of lease documents to Aurum Exploration (Fiji) Limited which will allow for the construction of a wharf.
The 60 acres of land which belongs to the Mataqali Nalutu will be used to construct a 800 meter wharf where bauxite ores will be shipped directly to melting plants in China for processing.
Mr Sukanaivalu issued both a surface and foreshore lease to company official Basilio Vanuaca in the presence of themataqali Nalutu.
Also present at the handing over ceremony this morning were ministry officials, acting permanent secretary for Lands and Mineral Resources Filimone Kau and Commissioner Northern Lt Colonel Inia Seruiratu.
Lt Col Seruiratu also handed over a cheque of $101,930.00 as premium and lease payment to the mataqali Nalutu. Another cheque of $275,000 was presented to the vanua Navakasiga and vanua Lekutu as compensation for the loss of fishing rights at Galoa Bay, the proposed construction site for the new wharf.
Under the Land Use decree and Land Use Regulations, government as administrators of these lands will now set up three separate trust accounts for the vanua Navakasiga , vanua Lekutu and the mataqali Nalutu.
The composition of these trust accounts will be finalised by the Prime Minister after receiving nominations from villagers. The Commissioner Northern will be one of the trustees who will play an advisory role for the landowners under the arrangement.  
Apart from the income earned from lease and premium payments, other direct benefits include improved infrastructure and better access to health services and education for this rural community.
Bauxite mining works is expected to start in April with the issue of a mining lease to the company.
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Bauxite mining to start in April
The Acting Permanent Secretary for Lands and Mineral Resources Mr Filimone Kau today confirmed that the bauxite mining at Nawailevu in Bua will begin in April this year. 
He said the Ministry and the Land Use Unit is now awaiting the legal vetting of the regulations that will kick start mining in Bua.

Mr Kau made the comments in a joint meeting yesterday afternoon held at the Commissioner Northern Office between the Ministry, Comm. Northern and representative from Aurum Explorations.

"The regulations will have to be endorsed by Cabinet in a few weeks time then the surface lease can be issued. One month after being issued with  the surface lease, then the mining lease will be issued- so we are looking at by the end of April, the bauxite mining is expected to kick start the northern economy," Mr Kau said.

He said that Government has an overarching responsibility to strike the right balance between the needs of landowners and the tenants or investors.

“It is our responsibility to safeguard both landowners and tenants/investors alike,” he said.

In that regard a consultation will be held this Wednesday between the Ministry and the landowning units to finalize the name of the trustees and what the communities should expect once the mining begins.

Aurum Explorations is also looking forward to start work on the site and are eagerly waiting for the regulation to be endorsed by Cabinet. As part of the lease offer- land owners will be given first preference on unskilled and skilled employment provided they meet the criteria.

Bauxite Mining to start by March

Bauxite mining at Nawailevu in Bua is expected to start by March according to the Ministry of Lands and Mineral Resources.
Prime Minister Commodore Voreqe Bainimarama designated to the Land Bank the first parcel of native land earmarked for bauxite mining in the area.
This has started a chain of processes that will allow the Director of Lands to issue a surface lease to mine investors Aurum Exploration (Fiji) Limited next week.
A mining lease is expected to be issued in March.
The director’s powers are stipulated in the Land Use Decree of 2010.
Acting Permanent Secretary for Lands and Mineral Resources Mr Filimone Kau said the surface lease will give Aurum Exploration (Fiji) Ltd access and exclusive possession to the land.
“They cannot mine but they can start some preliminary work like building a campsite etc access, bridges, and infrastructure,” he said.
“They can only mine after being issued with a mining lease which will be around March this year,” Mr Kau added.
In addition, all these lands are also free from all encumbrances including Fiji Pine partially surrendering its lease and the reverting of legal rights over land to native landowners from the Mataqali Nalutu, Mataqali Noro and Mataqali Naicobo.
The site proposed for mining was previously leased by Fiji Pine Limited and covered under pine trees.
Aurum Exploration Fiji (Ltd) paid Fiji Pine $1m for the partial surrender of their lease and subsequent large scale harvest of pine trees to allow for mining works.
“This is a good beginning for the Ministry in facilitating investment for the betterment of the nation as a whole,” Mr Kau said.
Government’s land reform initiative was borne out of Pillar 6 of the Peoples Charter for Change, Peace and Progress and is meant to address all critical issues pertaining to land which will provide the platform for the nation to progress economically and socially.
Bauxite_Mine
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