Questions raised in Solomons over NZer's mining licence

Kelvyn Alp

The Solomon Islands union movement has questioned the government's decision to issue a mining licence to a New Zealand company.

The licence for an alluvial gold mine in Central Guadalcanal was issued last week to Pheonix International (SI) Ltd, a company owned by New Zealander Kelvyn Alp.

But the Solomon Islands National Union of Workers told Australian media there are questions about what experience the company has in mining.

The union's general secretary Tony Kagavoi said the government issued the licence without doing proper checks on the company and its owner.

The unions will discuss their concerns with ministry officials later this week.

Kelvyn Alp has a history of activism in New Zealand.

He was once the leader of the Direct Democracy Party and was a Manukau mayoral candidate in the 2007 local body elections.

Prior to that, in 1996 he founded the New Zealand Armed Intervention Force (NZAIF). In 2002 the militarist group "declared war" on the Government, claiming it was controlled by "foreign interests".

His arrival in Guadalcanal to commence a mining operation was greeted with almost a 'cargo cult' sense of exuberance by the local villagers, who see the employment opportunities as a path out of their poverty-stricken existence.

And the enterprising New Zealander has been quick to capitalise on all the positive sentiment.

"This operation will allow you to benefit from your own resources without damaging your environment," Alp told the local communities of Horohana, Koehoto and Lauvatale who live near the Balasuna River, the Solomon Star News newspaper reported.

"Gone are the days when your resources are being ripped off by logging. Now is the time to involve everyone for the future of your children," Alp told the communities.

Local labourers were told they would be hired to work for A$200 a day, the newspaper reported.

An Australian joint venture company, Gold Ridge Mining, already prospects for gold in the region.

The presence of the precious metal there was first reported by Spanish explorers as early as the 16th century.

Civil unrest in Guadalcanal in 2000 brought a halt to mining activities, with exploration resuming in 2005.

Gold closed at US$952 per troy ounce on the New York Mercantile Exchange this morning, down from US$955 late on Friday.

- NZHERALD STAFF