LOGGING COMPANY, Asia Pacific Investment Development Ltd (APID) has finally been given the go-head to export a stockpile of bauxite it dug up on West Rennell last year, government sources have confirmed.

They say the Ministry of Mines, Energy and Rural Electrification has lifted the suspension of the company’s mining licence.

But the permission comes with a price: APID must agree to drop all legal actions against its rivals, including PT Mega Bintang Borneo.

Sources said APID, which according to Company Haus records is a logging company, has agreed to drop all its legal actions against others fighting for a slice of the rich bauxite deposit.

It is understood Cabinet formalised the arrangement a few weeks ago. Subsequently, the Mines and Minerals Board met two weeks ago to finalize the arrangements, which would enable APID to start exporting almost immediately.

Those familiar with the deal say APID is allowed to export its stockpile only and any new bauxite it digs up. It is not allowed to touch the stockpile of bauxite dug up by PT Mega Bintang Borneo.

The turnaround by Government in giving APID the green light in the bauxite saga has surprised many, including some landowners on West Rennell, who have expressed concern about the company’s claim of concessions, which they say covers nearly all of the island of Rennell.

APID’s controversial claims over the bauxite deposit go back a long way, culminating in the sacking of a number of senior officers in the Ministry of Mines, Energy and Rural Electrification for their alleged part in the whole matter.

The sackings followed an investigation by the Attorney General’s Chamber last year.

Among other things, the investigation found that procedures were not followed in granting APID a mining licence for the West Rennell bauxite. The inquiry also found irregularity in the alleged renewal of APID’s mining licence, which had lapsed.

It also made similar findings against PT Mega Bintang Borneo, a mining Indonesian company, Cabinet initially allowed to export the bauxite it had dug up. It was able to export just 50, 000 tonnes before APID slapped a court injunction against further export.

The report by the AG’s Chamber recommended, among other things, that the mining licences granted to APID and PT Mega Bintang Borneo be revoked and that both companies be encouraged to reapply.