Fiji is ramping up its bauxite export capabilities despite socio-political unrest

The Republic of Fiji is home to the Vanua Levu mine, which is one of the largest bauxite mines in Oceana, with reserves estimated at one billion metric tons. Despite having such large reserve of bauxite, bauxite mining has not been explored productively in the country due to difficult location and logistics, the military coup in 2006, the constitutional crisis in 2009, and the current  military dictatorship. However, a number of companies have been continuing bauxite mining operations in Fiji despite the difficult situations and infrastructure.

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The Fijian government confirmed its first shipment of bauxite in September 2016 from the Fijian port of Bua to be delivered to China for its alumina refineries. According to Xinfa Aurum [Exploration (Fiji) Ltd], the shipped bauxite had with a total gross tonnage of 69,000. Before that , Xinfa last exported bauxite in April, 2015. So far, a total of 22 shipments of bauxite have been carried out by the Fiji miners from 2012 to 2015.

Recently, Fiji has announced that its vessel, the MV Ocean Merry, at the port of Galoa in the province of Bua, loaded the first shipment of 70,000 tons of bauxite ore for 2017, which will be headed to China.

If we look at the export statistics of Fijian bauxite for the years 2015-2016-2017, we can understand the development in bauxite production in the country.  The estimated bauxite export stood at 1,72,336 tons in 2015, and the total value of bauxite export was about USD 8.4 million. Exports were mainly driven by China (almost 84%).  For the year 2016, the estimated bauxite export stood at 2,17,358 tons in 2016 and the total value of bauxite export was about USD 10 million. For the year 2017, Fiji is expected to export 1,75,001 tons of bauxite with a revenue realization of USD 7.4 million. The prime destination of bauxite export is China.

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The hunger for bauxite in China has been increasing every year because of the new alumina and aluminium capacity expansions in the country.  Recently, the export restrictions in Malaysia and Indonesia have created a lull in the overactive bauxite export market opening an opportunity for other bauxite mining countries to explore bauxite supply potential to China. Fiji bauxite industry has loads of potential for economic development of the country as well as for the mining land owners. The government as well as the landowners are optimistic about the future of the industry which is helping the industry grow despite the socio-political disturbances.