Rennell & Bellona Executive Rejects NESI’s application for business licence

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The Rennell and Bellona Provincial Government Executive has rejected Nickel Enterprise SI Ltd (NESI) application for a provincial business license to carry out prospecting on Rennell Island.

Documents obtained by SBMOnline showed the executive has also told NESI to immediately leave the island and refusing to stop its activities on Rennell would result in a legal suit being filed against them.

The decision comes as mining on Rennell hit the headlines last week when it was revealed in parliament that APID which previously mined bauxite on the island had failed to pay taxes and royalties after 33 shipments that worth $288m. NESI has also had connections with APID as disclosed in Parliament last week.

NESI initially applied for a provincial business license on 19^th June to carry out prospecting in Rennell Tenement A, B under PL No. 05/24 and PL No. 06/24 respectively.

On June 20^th, the Executive considered the application but resolved to defer its determination as they called for NESI to provide certain documents – required under its Ordinance. However, NESI was unable to provide the documents but instead requested a re-consideration. The executive then re-considered the application on 23^rd August and resolved to maintain its initial decision to seek advice from the Attorney-General.

While the executive was waiting for the formal advice of the Attorney-General, NESI landed its personnel on Rennell around the second week of September and set-up a camp in Ward 5 and carried out some survey works in the bush, said the Rennell and Bellona executive.

The executive convened on 1 October to determine the application by NESI which they agreed to reject it.

“Regrettably, the executive has resolved to reject the application under section 8(1) (b) of the ordinance on the ground that in landing in Rennell and carrying out activities there while the application was pending a determination, NESI contravened section 4 of the Ordinance. Such breach is considered fatal to the application,” states the letter to NESI from the executive.

The executive, however, also resolved that NESI is at liberty to lodge two fresh applications (1 each for PL to the Executive to consider but only if NESI first complies with two prerequisite conditions:

• NESI must voluntarily withdraw its personnel from Rennell and immediately cease all activities on the island upon receipt of the letter (sent 7^th December)

• NESI must provide document which the executive may demand under section 7 (1) (d) of the Ordinance.

Meanwhile the provincial executive stated that NESI is not allowed to carry out prospecting in Rennell, or keep its personnel or the island or to continue carrying out activities on the island in preparation for prospecting.

The provincial government warns in the event that NESI continues to maintain its presence on Rennell or to carry out such activities on the island without a business license even after receiving the letter, the executive will formally open a criminal case against NESI and its directors for contravention of the provincial Ordinance.

NESI’s     RESPONSE

SBMOnline understands that lawyers acting on behalf of NESI have already written to the Rennell and Bellona executive to reconsider its decision to reject NESI’s application for a business licence.

Their lawyer has given the province five working days to withdraw the resolution or they will seek their client’s instructions to apply for urgent relief, including interim restraining orders and costs.