For Land Owners
Your surface right negotiation and access agreement.
The only time the landowners will be given the opportunity to negotiate about any mineral prospecting or mining development is when you negotiate for surface rights and access rentals. This is the only opportunity. Negotiate smartly; know the relevant procedures in place. Know what you should negotiate and to whom.
1).The Director of Mines and Minerals has the power to negotiate with the land owners for surface
access rights and rentals. After permits or license are issued by the government.
2).The Minister of mines determines the rates of Royalties upon the advisement of the Board.
3).The Royalties are paid to a trust fund, whereby the Minister will determine how much to give the landowners.
Negotiate smartly & innovatively: Landowners do not have any opportunity to negotiate with either the government, or mining company for sharing of production, revenues, profits or in the equity capital of the mining company if a full scale mining development will take place.
FOR PROVINCIAL GOVERNMENT & COMPANIES
The Mining industry is a complex industry. It involves high risk investment from investors and a lot of agreements to be negotiated. The Provincial Government represents the particular Island Province.
The Provincial government in order to represent it’s Island must need to know the powers it have.
1. The Provincial government has a representative on the Mines and Minerals Board of Directors.
2. The Provincial government has the power to license trades and businesses or professions within its
jurisdiction.
3. It can raise revenue through basic rates and property tax.
4. Agriculture and related environmental issues.
Know the powers you have. Negotiate Smartly. Provincial Government do not have any opportunity to negotiate with either the government, or mining company for sharing of production, revenues, profits or in the equity capital of the mining company if a full scale mining development will take place.
FOR MINNING INDUSTRIES
Solomon Islands is a diverse nation with different cultures and tradition. Investing in the mining industry therefore needs one to understand the underlying land tenure system. The social structure in place and the prevailing environment of that Island. Have a depth understanding of the customary dispute resolution and the etiquette. Only then, you can asses the risk of investment and properly cover yourself through negotiated agreements with the Government, Landowners and the Provincial Government. This will secure the confidence of your investors, your insurers and the landowners.
How do you know you are dealing with the right landowners? How will you secure
the confidence of the landowners, the Provincial Government and the National
government in the Solomon Islands in the long term?
Application process for Mineral Prospecting CLICK HERE