JAPANESE GOVERNMENT SUPPORTS SUMITOMO METAL MINING EFFORTS IN SOLOMONS.
17:10hrs 4 April 2011
The Japanese government supports Sumitomo Metal Mining Solomon Islands company in its efforts to prospect and mine nickle in Isabel Province.
http://www.sibconline.com.sb/main.asp
Again SIBC has the 'news' first but it's a subscription service at 20c a day for those that have a credit card. I can't seem to find any "freebies" by googling but did come up with this - 'Sources of Growth Roundtable' held in Honiara in March 2009.
pages 8-13
1 - Minerals 1.2. - Exploration for gold and other minerals is taking place under 55 current exploration licences (including 33 under-sea licences), according to the acting Director of Mines. Previous activity on Isabel undertaken by Sumitomo has revealed large lateritic nickel deposits. Failure to reach agreement with local landholders by Sumitomo Mining within the required period resulted in their exploration licence being revoked. A subsequent High Court decision has led to the licence being put to international tender.
1.3. - The experience with the Sumitomo lease may have contributed to a recent change in the Mines and Minerals Act with the intention, according to the to Bills and Legislation Committee of Parliament to 'allow investment in the mining sector by placing land areas identified for mining in the open market under a fair and transparent process.'
Government wishes to prevent the continued issuance of licences to companies that do not proceed to mine. There is increased pressure on prospecting companies to take up mining leases, but it is not retrospective.
The Bills and Legislation Committee of Parliament has expressed concern that there has been insufficient 'due diligence' in issuing prospecting applications and that the Director of the Mines and Minerals Board had insufficient powers for the 'independent assessment' of applications for prospecting licences and reconnaissance permits.
1.4. - Other large scale mining before 2013 is unlikely, even with metal price recovery. The proposed US$1.9 billion nickel smelter proposed by Sumitomo under record nickel prices will not be built in this time frame (if at all), given the collapse of metal prices and the access/licensing dispute.
2.3. - The publicity associated with the Sumitomo case may have adverse consequences for further nickel prospecting on Isabel, particularly given recent (non gold) metal prices. The needs and concerns of local communities and access arrangements to customary land are critical to success of both prospecting and mining. There is no minerals policy that clearly defines how local communities are to be dealt with.
3. 2. Key measures conducive to achieving 'favourable case' scenario.
Implementation of the amended Mining Act* in a way that maximizes the transparency in dealings between prospective miners, SIG and local communities, and minimizes any unaccounted-for decisions by the Director of the Minerals and Mining Board in awarding or renewing licenses and leases.
Full report at http://siteresources.worldbank.org/INTPACIFICISLANDS/Resources/SOLOMONISLANDSSOG.pdf
* see post above for link to The Mines and Minerals (Amendment) Act 2008
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