By Alfred Sasako

HONIARA, Solomon Islands (Solomon Star, March 21, 2009) – Shortly after he took office in December 2007, Mines, Energy and Rural Electrification Minister, Edward Huniehu, told the nation [and the world] that the future of Solomon Islands’ economy lies in its untapped minerals wealth.

Given his background as just an ordinary folk, Mr Huniehu’s pronouncement no doubt has drawn cynicism rather than support.

What has begun to dawn on everyone, in particular, resource owners is that the Minister’s statement is just as prophetic as it is true.

A colourful ceremony which took place at Koleasi village along the Balasuna River, east of Honiara on Wednesday this week only enhanced the minister’s view.

There, some two and half thousand people – women, men, boys and girls and children - gathered to witness the next phase of the preparation for the nation’s first commercial alluvial gold mining operation on a 50 sq km concession at Sutakama.

Alluvial mining of this very rich deposit is expected to begin in July, three months from now.

Samples from holes sunk in strategic areas along the Balasuna River have indicated estimated deposits of a recoverable 42 million ounces of high grade gold.

These holes were excavated to a depth of six metres about 100 metres apart.

"I still believe the statement I’ve made fifteen months ago that the future of our economy lays in our untapped minerals resources," Mr Huniehu told me this week.

"As Minister responsible for this very important sector, I am very pleased with what Pheonix International [SI] Ltd has done. It has set a new benchmark, particularly for sharing of the proceeds with resource owners," he said.

He said Pheonix International [SI] Ltd had done what investors in the mining industry should have done or indeed should be doing.

"I think it will be a hard act to follow. What makes the approach by Pheonix International [SI] Ltd hard to beat is the way they’ve gone about getting the resources owners together from the start and helping them to get maximum benefits out of their resources," he said.

"The arrangement to share the profits on a 50/50 basis is going to be very hard for others to beat, let alone emulate.

"But it is the right thing to do and I am pleased that one company has recognized the importance of such an arrangement. I believe that as the global economic crisis worsens, people with money will turn to invest in gold because of the rising value of the metal.

"I believe they will come here because we have lots of it," Minister Huniehu said.

Mr Huniehu is not alone in his praise for Pheonix International [SI] Ltd as speaker after speaker demonstrated last Wednesday.

They described the occasion as both "historic and a milestone".

"You’re the first investor who is fair and true to your word," Chairman of Hokola Landowners Association, Simon Tonavi, told New Zealand businessman, Kelvyn Alp, whose company is developing the alluvial gold deposit.

Mr Alp is Managing Director of CARATAPA Group of Companies, based in New Zealand. Pheonix International [SI] Ltd is one of the concerns in the stable.

"Of course, we never believed you that this day would come. But it has. Thank you," he told the crowd.

Mr Tonavi told the gathering that Pheonix International [SI] Ltd was the first company that has provided direct assistance to the different communities in the area.

"You are genuine and I should say the best investor throughout the ages. You’re always true to your word. We, the landowners failed you at times, but you never did. You have always kept your word," Mr Tonavi said.

He said what the Hokola Landowners Association and Pheonix International [SI] Ltd have done, is to demonstrate the Bottom-Up Approach, which the government of Manasseh Sogavare had introduced.

"When Kelvyn Alp’s company took the prospecting licence for the Sutakama concession in July last year, he dealt directly with us – the people. What you are witnessing today is the demonstration of the Bottom-Up-Approach," he said.

"As a result of his genuineness, the landowners will get maximum benefits out of this development. We, here in the bush in central Guadalcanal, are proud that through this project, we shall be contributing to the national economy".

According to Mr Tonavi, revenue from the sale of gold from the project would be around $265 million annually for at least the next 30 years if current global rates remain steady.

"Landowners’ share will be $131 million annually. This means that landowners will get $10.9 million a month for the next three decades. To break it up further, this means each boy, girl, woman and man who belong to the tribal groups that own this land will get $3, 000 each for the next 30 years," he said.

"The challenge for us is what we are going to do with this money. I suggest that you start planning your family’s future now. It is going to be a lot of money and we need to develop our standard of living.

"I want to ask everyone to cooperate," Mr. Tonavi said.

Mr Tonavi said his people were "really surprised" at how fast Pheonix International [SI] Ltd has moved the project.

When his turn to speak arrived, Kelvyn Alp was brief and to the point.

"Today belongs to you," he told the crowd.

"I am here today to show you that I keep my word. Let me assure you that I will continue to keep my word," the former soldier-turned businessman said.

"True, I might be a bit rough some times, but that’s just the way I am.

"What I want to share with you today is that I continue to be amazed at the level of talents your own people have here," he said, referring to the three geologists who conducted the tests on the Sutakama concession.

"I also want you to know that I didn’t come here to ask you to leave your land. No. I said to you then and I say to you now, you stay where you are and we’ll work together," he said.

Mr. Alp told the crowd that when he returned from New Zealand in two months from now, the pace of work in the area would heighten.

"When I get back from New Zealand, it’ll be a lot faster. I guarantee that," he said.

Mr Alp’s last statement prompted the Secretary of the Hokola Landowners’ Association and Master of Wednesday’s Ceremony, David Rex, to say.

"Everyone didn’t believe you [in the first place] because everything you said is too good to be true".

Guadalcanal Provincial Minister for Mines, Samson Churu, told the gathering that Mr Alp is seen as "the saviour" of the people.

"This is an isolated area about which no one seemed to care, but you do. By investing your money here, it shows you care," the Minister said.

Mr Churu urged his people to cooperate with Pheonix International [SI] Ltd.

"This is just the beginning. I encourage you to cooperate because no one living in this area will miss out on the direct and spin-off benefits from this mining operation".

James Votaia, who also spoke at the gathering, is the Chairman of the Downstream Association.

"Your determination to achieve is very evident here today. You have set a moment in history," he told Mr Alp.

"Unlike other people who are worried sick about the global financial crisis, you did not seem to see it. You are here intent in making sure this project gets off the ground and you have.’

"We’d like to assure you, you can use our roads for this development".

Director of Mines, Peter Auga, told the gathering that the approach by Mr Alp’s Pheonix International [SI] Ltd to the project had taken his department by surprise.

"When Pheonix International [SI] lodged its application for the Sutakama concession, we were not sure whether to process it or not as we did not seem to have any record of alluvial gold deposit in the area.

"But we went ahead and processed it. I am pleased to be able to say that the Mining Licence for the Sutakama concession has been granted to Pheonix International [SI] Ltd," he said.

Solomon Star: http://www.solomonstarnews.com/