Pacific Bauxite Ltd. suspended exploration at its Nendo bauxite project in the Solomon Islands after the minister of mines, energy and rural electrification canceled the prospecting license hosting the project in late May.
The company said the cancellation of PL 01/16, held by its 50%-owned joint venture subsidiary Eight South Investments Pty. Ltd., was "completely unexpected."
According to a June 6 company release, the minister's order pointed out "unsatisfactory level of prospecting" at the Nendo license and a "failure to establish amicable relations with the local communities" as reasons for the cancellation.
"The company is of the view that these grounds are factually incorrect and therefore unjustified," it said, adding that it will appeal the minister's decision in the country's High Court.
The appeal process is estimated to take six to 12 months. The company will also look at other settlement options available to the joint venture.
Meanwhile, Pacific Bauxite has redeployed the resources from Nendo to its Southwest New Georgia bauxite project in the Solomon Islands.
The company said it will aim to fast-track the Southwest New Georgia project and focus on identifying DSO quality mineralization of between 5.9 million and 10.0 million tonnes.
