APID faces possible lease cancellation despite paying all dues, claims company

Four shipments of bauxite have been shipped out by Asia Pacific Investment Development appointed Bintan Mining SI Limited from its Rennell operations according to custom reports.

A total of $1.2 million has been paid as export duty to the government for the China bound shipment dispatched in February.

Bintan SI Limited was appointed by APID to carry out the mining operations while the latter held the mining lease and there are valid records to prove they have paid a royalty of $342,567 to landowners last month. Since the landowners do not have a bank account, the money is held at the Central Bank.

According to the documents, a total sum of $1.6 million per year has to be paid to Renbel Province for mining operations which include business license and other fees.

A spokesperson from APID has confirmed receiving a letter of intension from the government for the cancelation of its mining lease.

The company has been given a notice of 14 days to respond to the letter explaining why they should be allowed to keep their mining rights. The notice of cancellation has been issued in accordance with the Mines and Mineral Act, Section 71, which allows cancellation of lease if the company fails to meet the required conditions of the board.

APID spokesperson said that they are working on their response stating “We believe we’ve been complying with all the requirements under the Mining Act” including meeting “all our financial obligations to the landowners, the province, and the national government.”