A Commission of Inquiry (COI) will be established to investigate the unpaid $8.6 million in royalties from 33 bauxite shipments extracted in West Rennell between November 2017 and January 2019.
The company at the center of the issue, Asia Pacific Investment Development (APID) Limited, subcontracted Bintang Mining Solomon Islands (BMSI).
The royalties were not paid after APID’s mining lease was cancelled, and BMSI was later liquidated.
Royalty Breakdown:
- Solomon Islands Government: $4.3 million
- Landowners: $3.4 million
- Renbel Province: $864,558.62
New Minister of Mines, Energy and Rural Electrification, Derrick Manu’ari, announced the COI during a press conference at the Office of the Prime Minister and Cabinet. He stated that the inquiry will investigate:
- Legislative and administrative weaknesses
- Individuals or entities involved in any wrongdoing or corruption
- The broader systemic issues that allowed the non-payment to occur
“The Commission of Inquiry will help us understand the root causes of this problem and inform the reforms we need in the Ministry,” said Manu’ari.
Director of Mines, Krista Tatapu, explained that mining companies are obligated to inform the Ministry if they are unable to pay royalties, which APID failed to do.
“With APID’s lease cancelled and BMSI liquidated, the Ministry now faces difficulty in determining who is liable to pay the outstanding dues,” she said.
Tatapu also confirmed that the Ministry, through consultation with the Attorney General’s Office, will lodge a legal claim against APID for non-payment, following the company’s unsuccessful appeal in the High Court.
Minister Manu’ari emphasized the urgency of establishing the Commission, noting that funding remains the only potential obstacle.
However, the Ministry will work closely with the Prime Minister’s Office and the Ministry of Finance and Treasury to secure funding and finalize the Terms of Reference through a Cabinet paper.
“Justice must be served. The COI will allow us to recover what is due to the landowners, the government, and the province.”
When asked about environmental rehabilitation in West Rennell, Manu’ari acknowledged the issue and promised to consult with the Ministry of Environment. He committed to ensuring that future mining operations adhere to sound environmental practices.
The Minister also noted that the Ministry of Mines is under-resourced, with around 20 technical vacancies, affecting its ability to monitor and regulate operations effectively.
He pledged to work with the Prime Minister to ensure full staffing for better oversight.
“This Ministry handles crucial sectors like energy, water, and minerals. It must be treated as essential.”
Responding to media concerns about the recurrence of such issues, Minister Manu’ari admitted that the current Minerals Act is outdated and unable to address modern mining challenges.
“A new Minerals Act is expected to be introduced to close legislative loopholes and improve accountability,” he said.
Further to that, Director Tatapu said the Ministry has already implemented stricter enforcement.
“For example, mining companies now must pay royalties before being issued consignment permits for mineral exports.
“This approach has been applied to companies in Isabel and Gold Ridge,” she said.
Minister Manu’ari, in office for just a week, is moving swiftly to address what he describes as a long-standing and urgent issue.
“The people of Rennell and Bellona have waited too long. The COI is the first step toward accountability and reform.”
Minister Manu’ari replaced former Deputy Prime Minister and Mines Minister, Bradley Tovosia, who was in the ministry for eight years.
He is currently the new minister for fisheries and marine resources.
By Eddie Osifelo
Solomon Star, Honiara
