Govt rejects claims of prospecting license grant WEDNESDAY, 27 APRIL 2011 04:23 GOVERNMENT yesterday unequivocally rejected claims and validity of a prospecting license being issued to Axiom KB over the nickel and cobalt deposits on Isabel.
Honiara was reacting to a media statement issued by the company to the Australian Stock Exchange (ASX) on April 21 this year.
Company shares rose some 70 per cent during the months of March and April.
In a statement issued last night, the Government said the circumstances under which a former Minister of Mines, Energy and Rural Electrification Mark Kemakeza issued both the Letter of Intent (LOI) on 12 April and a Prospecting License three days later on 15th April this year was highly suspicious.
?This is more so when the Prospecting Licence was issued on the eve of his dismissal,? the statement said.
?Prospecting Licence, according to the Mines and Minerals Act, is normally issued within three months of the issuance of the Letter of Intent (LOI).
?The purpose for such a legal provision is to ensure that the applicant would need time to successfully negotiate a Land Access Agreement with landowners,? it said.
?Unfortunately, this has not been the way the minister had dealt with Axiom. If anything, it raised more questions than answers.?
In its statement, the Government said it is aware that the Mines and Minerals Board had come under tremendous pressure from the Minister only days before he issued both the Letter of Intent (LOI) and the Prospecting Licence before his sacking.
The statement said Prime Minister Danny Philip is extremely concerned over the matter.
He promises to consult with all the stakeholders, including the Minister of Mines, Energy and Rural Electrification, Hon Moses Garu, the Chairman of the Mines and Minerals Board, Peter Auga, the landowners of San Jorge, Takata and Jejevo, the MP for Gao/Bogutu Constituency, Paramount Chiefs and other tribal chiefs and the Premier of Isabel Province.
?If there were irregularities in the way the former Minister handled the nickel issue, it means that every arrangement the former Minister did in the issuance of the letter of Intent as well as the Prospecting Licence will be suspended pending an investigation into the matter.
?All Letters of Intent or Licences issued shall be deemed suspended until further notice,? the statement said.
AVQ Price at posting:
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