The Ministry of Mines, Energy, and Rural Electrification (MMERE) wishes to address public concerns regarding Hon. Minister Bradley Tovosia’s recent decision to revoke the intention to issue a prospecting license to Ni Hao Investment (SI) Ltd over Koloula.
After careful consideration and consultation with relevant stakeholders, the intention was decided to be revoked. The Ministry would like to assure the public that this decision was made in the best interest of the country and its resources. MMERE remains committed to ensuring transparency and accountability in all matters related to mining and energy in the Solomon Islands.
The Minister of Mines, Energy, and Rural Electrification Hon. Tovosia acknowledges the discussions and differing opinions surrounding this decision and seeks clarity. The following key points outline the rationale and legal basis for the Minister’s decision:
i. Due Process and Consideration
The Minerals Board reviewed the renewal application from Ni Hao Investment (SI) Ltd in its meeting on 6th February 2024. Following a comprehensive assessment, the Board recommended rejecting the application. However, in exercising his statutory authority, the Minister conditionally approved the application, emphasizing strict compliance with prospecting requirements.
Minister Tovosia’s decision was based on the principles of due process and fair consideration, considering all relevant factors. By approving the renewal application with conditions, the Minister aimed to balance the interests of both the investor and the state, ensuring that all legal requirements were met. This decision reflects a careful and deliberative approach to governing natural resource investments, prioritizing accountability and transparency in decision-making processes.
ii. Conditions of Approval
As part of the conditional approval, a Letter of Intent was issued on 26th August 2024, explicitly requiring the successful negotiation and conclusion of a Surface Access Agreement (SAA) before formally issuing the prospecting license. This condition is a standard requirement to ensure lawful access and minimize disputes.
The Surface Access Agreement will clarify the terms and conditions for access to the land for prospecting activities. It will outline the responsibilities of both parties and establish guidelines for environmental protection and restoration. By prioritizing legal compliance and cooperation, the government aims to foster positive relationships between resource investors and local communities, promoting sustainable regional development.
iii. Community Concerns and Access Issues
The Ministry received multiple objections from key stakeholders, including local landowners and community representatives, raising serious concerns about accessibility and consent for prospecting activities in the proposed area. These objections highlighted the lack of guarantees that Ni Hao Investment (SI) Ltd would secure full and unhindered access to conduct prospecting operations.
iv. Minister’s Statutory Responsibility
Given the significance of landowner concerns and the potential for operational difficulties, the Minister acted within his legal mandate to ensure that any approved prospecting activity has a reasonable prospect of success. The absence of clear access assurances would have posed significant obstacles to effective mineral exploration. Therefore, the Minister prioritized addressing these objections and working with Ni Hao Investment (SI) Ltd. to establish a clear plan for securing access to the proposed area.
The Minister fulfilled his statutory responsibility to promote responsible and successful mineral exploration while respecting landowners’ concerns. This proactive approach ultimately paved the way for a more collaborative and mutually beneficial relationship between all parties involved in the prospecting activities.
v. Final Decision
In light of these developments, the Minister determined that proceeding with the issuance of the prospecting license would not be in the best interest of the stakeholders involved, nor would it align with the ministry’s commitment to responsible and conflict-free resource development.
Consequently, the decision to revoke the intention to issue the prospecting license was made by legal and procedural frameworks. This decision marked a significant turning point in the ministry’s approach to resource development, emphasizing the importance of ethical considerations and responsible decision-making.
MMERE reiterates its commitment to transparency, responsible resource management, and stakeholder engagement.
“We encourage open dialogue and cooperation among all parties to ensure the sustainable development of the nation’s mineral resources.”
- OPMC
