New Zealand miner defends Solomons' gold proposal

Updated March 24, 2009 16:21:39

The New Zealand businessman behind a new gold minining proposal for Solomon Islands is defending it against union criticism and his lack of mining experience, saying he aims to improve the living standards of the local landowners. Last week the Solomon Islands' Government issued a mining licence to New Zealand based Pheonix (as the company spells it) International, giving it a 50 square kilometre concession to begin alluvial mining for gold in Central Guadacanal. At the time Government officials heralded the mining licence as a fantastic opportunity for local landowners, some claimed it may be the world's biggest gold deposit. But the Solomon Islands' National Union of Workers, says it has a number of concerns over the proposal, and about the man behind it.


Presenter Campbell Cooney

Speaker: Managing Director of Pheonix (sic) International Kelvyn Alp

COONEY: Those concerns range from the expertise the company has in mining, the promises it has made to landowners, the speed with which the licence was issued, and the background of the man who heads up Pheonix (sic), which is spelt P-h-e-o-n-i-x International, Kelvyn Alp. But Mr Alp has defended himself and his activities. Do you have the financial backing to ensure that this operation will happen?

ALP: Yes, otherwise I would not go into it.

COONEY: You've got backers, that sort of thing?

ALP: We have sufficient funds to carefully make this a successful operation.

COONEY: Mr Alp's also dismissed the claims the area has already been surveyed for mineral resources a number of times, and has defended the deal he has reached with local landowners. What evidence did you give to the Solomons Government to support them issuing you a licence then?

ALP: We give them exactly what you are meant to give them, that's the legal action requirements. You give them the prospecting report of what you have found, and prospecting of course is ongoing.

COONEY: You have signed an agreement with the local people?

ALP: Correct.

COONEY: What is that agreement?

ALP: It's a service access agreement whereas we supply machinery, finance and expertise, they supply access to the land, ongoing access to the land and resources and settle any sorts of any internal disputes themselves and as a result, a 50-50 share in the profit takes place.

COONEY: This is a formalised agreement, signed off?

ALP: Correct.

COONEY: Over the past two days, Radio Australia has tried repeatedly to call the Solomon Islands Ministry of Mines, the Director of Mines, Peter Auga, and the Minister responsible, Edward Huniehu, to ask why it supported the issuing of a licence to Pheonix and why they have been so upbeat in their public comments about the proposed operation. So far, there has been no response. But part of the unions concerns are about Mr Alp's background. In the 1990s, Kelvin Alp was one of the leading figures in the now defunct New Zealand Armed Intervention Force. It's various descriptions include being a mercenary operation, a paramilitary pro-people's rights movement, and as part of a Maori separatist organisation. Mr Alp readily admits he's involvement, but believes it has been exaggerated.

ALP: A lot of the history of that is also conveniently left off the airways, but you get that anyway. I don't really give a flying f*** to be honest.

COONEY: But, he says he understands that given the ethnic tension experienced in Solomons during the late 90s, there would be nervousness amongst some about anyone who has a militia background.

ALP: I can understand some people's views, without having access to the facts and yeah you would sort of get that type of scenario, but at the end of the day, I mean the proof is in the pudding. I mean I have been going there since the year 2000, so I've had a history of about nine years for the country. All Police checks are done prior to giving me the residency permission and plan for licences and things of that nature. So that all went through fine.

COONEY: And while this is a business opportunity in Solomon Islands for Kelvyn Alp, he has indicated he is also happy to be an agent for social change.

ALP: I mean there is a hell of a lot of support for us in the local community, so if I am rocking the boats, then that's one of those things. But I am not there to rock their cushy little boat, I am there to sink it. But there are some people in some countries in which we go into and start working, get treated properly and on an equitable basis.

COONEY: Now you don't feel that that has happened in the past?

ALP: No, I don't, and it is quite evident if you look around the place.

COONEY: Give us some examples of what you mean please?

ALP: Well you have got people working in hotels, but they would never be able to afford to stay even one night a week. The average wage for unskilled workers in Solomon Islands is around 400 Solomon dollars a fortnight, That's piss poor wages and slave labour as far as I am concerned, and we are there to change it. I mean all we are saying we would rather pay you more, you've got happy staff, you've got a bloody good operation.