Bauxite company given notice by Solomon’s government

A second Bauxite Mining company operating on Rennell Island in Solomon Islands has been given a 14 days’ notice to respond to the government or face cancellation of its mining lease for failure to meet conditions.

Government media release | Solomon Star

The Minister of Mines, Energy and Rural Electrification Hon. Samson Maneka has issued a 14-days notice to Asia Pacific Investment Development (APID) Ltd on Thursday 7 May following a Mines and Minerals Board decision on Thursday 30 April.

The Company has 14 days to respond on why its Mining Lease should not be cancelled.

The notice to cancel the Company’s Mining Lease is in accordance to section 71 of the Mines and Mineral Act for failure to meet conditions required by the board.

The Minister has also taken a similar action against another Company, PT Mega Bingtang Borneo Limited by canceling its prospecting license and mining lease on Thursday 7 May.

The company was issued a 14 days show cause letter on 23 December 2014. However, the Board has considered the response from the company and proceeds to advise the Minister to cancel the prospecting license and mining lease accordingly.

The Mining Leases were granted to Asia Pacific Investment Development (APID) Limited on 5th September 2014 and PT Mega Bingtang Borneo Limited on 9th September 2014 by the former Minister of Mines.

Controversies surrounding the two companies have brought the Ministry under heavy criticism since the issuance of mining leases to the companies to explore and mine bauxite on Rennell Island.

Permanent Secretary Kauha today has confirmed that the Mines and Minerals Board have made their decisions on the matters in an extra-ordinary meeting on Thursday 30th April 2015.

The recent board decisions have now put an end to the ongoing confusion on the legitimacy of the companies’ operations on Rennell Island.

The Solomon Islands Government will now negotiate with APID on the royalty payments for the three (3) shipments by the company since it was granted a mining lease late last year.

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Filed under Financial returns, Human rights, Solomon Islands

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