Provision for benefits included in the lease agreement
February 10, 2016 1:17 am
Lands Minister Mereseini Vuniwaqa says due diligence was carried out before a mining license was issued to Lion One Metals Limited for the Tuvatu Gold Project in Sabeto Nadi.
Opposition MP Viliame Gavoka asked her what benefits the landowners will have as a result of the mining license.
Vuniwaqa says all provisions for landowners benefits are covered in the license.
‘’The surface lease premium payable for Tuvatu is a million dollars – that will be paid in two tranches $700, 000 upon the grant of the surface lease which has already been granted and $300, 000 upon the first gold production. There is a surface lease rent of $30, 000 per annum for a period of 21 years as earlier indicated, a sum of $10, 000 per annum will also be paid by the company for Yavusa Rarawaqa, Mataqali Nabouwalu of Nagado village and Korobebe village’’.
The company will also pay $10, 000 annually as community development assistance to Korobebe and Nagado villages along with equal distribution of royalties once gold production begins.
The i-Taukei Lands Trust Board has issued a 21-year surface lease while the government has issued a 10-year mining lease for Tuvatu operations.