Ministry defends state custodianship of minerals

Fiji's Ministry of Lands and Mineral Resources has strongly defended the state's role as custodian of the nation's mineral wealth, framing it as a matter of public trust, equity, and essential for national development.

In a submission to the Constitution Review Commission, Minister Filimoni Vosarogo argued that keeping minerals under state ownership is vital to ensure that the benefits are shared fairly across the entire population, rather than concentrating wealth solely among the landowners where the resources are located. The Ministry emphasized that state control facilitates robust regulation, effective environmental protection measures, and an equitable distribution of revenue through royalties and taxes.

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We are in a race, Mr Chairman, for critical minerals. This is not merely about economics. It’s about national security, defence, and energy transition. The state must secure its own supply and must secure its own supply chains. By retaining ownership, the state retains a stake in strategic projects, ensuring that national interests are protected even when foreign expertise and capital are welcomed.

"We are in a race, Mr Chairman, for critical minerals," Vosarogo stated. "This is not merely about economics. It’s about national security, defence, and energy transition. The state must secure its own supply and must secure its own supply chains. By retaining ownership, the state retains a stake in strategic projects, ensuring that national interests are protected even when foreign expertise and capital are welcomed."

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Now this afternoon, we have heard submissions from you in relation to the philosophical aspect of that issue, the issue of ownership of mineral resources. It has given us another aspect of the ownership of minerals, particularly on how it has been suggested to us that the state has these minerals as a custodian rather than give them to the landowners, where the minerals might be abused and then taken out of control. I hope that is the correct interpretation of what you’ve been telling us. If you want to correct me, you’d better correct me now.

Acknowledging the ongoing national debate on mineral ownership, Constitution Review Commission Chair Sevuloni Valenitabua sought further clarification on the ministry's stance. Vosarogo elaborated that state ownership enables the capture of economic rents and windfall profits through royalties, taxes, and equity participation. This revenue, he explained, directly funds crucial public services such as schools, hospitals, and infrastructure, forming the "lifeblood of public services" and defining a functioning society. He also highlighted that owning mineral wealth adds significant value to the nation's balance sheet as a national asset.

While recognizing the aspirations of landowning units for direct mineral ownership, the Ministry maintained that state custodianship is paramount for safeguarding Fiji's long-term national interests and upholding the principle that natural resources belong to all Fijians.

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When the state holds the title, it can capture the economic rent, the windfall profits through royalty, taxes, and equity participation. This revenue becomes the lifeblood of public services, our schools, our hospitals, our infrastructure, and defines a functioning society. Furthermore, think about the balance sheet of the nation. If the state owns its mineral wealth, that wealth can be counted as a national asset.