the two major mining firms competing for in the Pacific island for bauxite ore, which used in the production of aluminium.
However, in October 2020, APID’s mining lease was cancelled by the government and since then the company and BMSI have been embroiled in court cases for a host allegations. Two major claims brought against the company is its failure to settle millions of dollars in taxes and royalties and its failure to rehabilitate the environment, after having exported large quantities of bauxite-rich soil in West Rennell for many years.
According to a report on royalty payments on mining on West Rennell Island, of the 100 shipments of bauxite ore exported by APID and BMSI, royalties have only been paid for 67. “With regards to the royalty share payments, only sixty-seven (67) shipments have been paid to the Central Bank of Solomon Islands (CBSI). The remaining 33 shipments were still outstanding and yet to be paid to the CBSI before it can be distributed to the rightful recipients,” the report summary, from the Central Bank of Solomon Islands, read.
Nicholas Biliki, a former director of the Ministry of Mines, told the Guardian that the unpaid royalties on the remaining shipments are estimated to be roughly SBD80 million (US$ 9.8 million), which is owed to landowners on Rennell Island, while another SBD10 million is owed in taxes.
“APID and its sub-contractor, BMC, [the parent company of BMSI] miserably failed to live up to their obligations. The company [APID] has lots of agreements with the landowners and lots of money has been owed to them. Also, the government has lost taxes from these 33 shipments,” he alleged.
On the other hand, the companies have failed to rehabilitate areas affected by mining and owing SBD10 million in payments to restore the environment in the island. “I understand more than a half of the areas mined have never been fully rehabilitated,” Biliki noted. “Though we cancelled the operation, the company has a legal obligation to clean up its mess before leaving.”
