Fiji bauxite export down in 2017 due to drop in the global bauxite price; China remains top destination

Recently, a media update says The Republic of Fiji has earned revenue of $2.8 million from the first shipment of bauxite in 2017, totalling $52.2m revenue since mining started at Nawailevu in Bua in 2010. Fiji houses 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, Fiji is slowly ramping up production and export of bauxite to earn revenue for the disturbed country.  So far, a total of 22 shipments of bauxite have been carried out by the Fiji miners from 2012 to 2015.

If we look at the export statistics of Fijian bauxite for the years 2015 and 2016, 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 stands at 58,033tons and the total value of bauxite export is estimated to be about USD 2.6 million. For the year 2017, Fiji is expected to export 47,541 tons of bauxite to China with a revenue realization of USD 1.2 million.

However, actual report from the country shows some difference in data. In September 2016, Xinfa Aurum Exploration (Fiji) Limited confirmed the shipment of about 69,000 tonnes of bauxite with an estimated cost at present market value of around $1.4m. 

Fiji’s Director Mineral Development Dr Raijeli Taga said that the bauxite shipped to China in 2017 weighed 58,709 tonnes which raked in revenues of $1.3.

If these reports are to be taken into consideration, Fiji currently exports about 60 to 70 thousand tonnes of bauxite mainly to china.

According to a data from the Ministry of Land and Mineral Resources, a drop in the global price of bauxite has taken its toll upon Fiji’s producers of the ore. It is at least one of the primary reasons shipments have been down this year to date. Though first shipment is made, further exports of bauxite “will be purely a business decision of the tenement holder which will depend on the market price in terms of profitability and sustainability of their operations.”

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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.  Fiji bauxite industry has loads of potential for economic development of the country as well as for the mining land owners. The country is optimistic about more bauxite shipment in the second half of 2017 provided international bauxite price gets a lift.