Solomons Gold Ridge Mine on track for first gold pour

Updated September 9, 2010 17:16:29

Solomon Islands' Gold Ridge mine is on track to pour its first gold in March 2011. The mine is expected to be a major foreign exchange earner and is an important part of the Solomon Islands government's strategy for economic recovery after the ethnic violence earlier this decade.

Presenter: Jemima Garrett
Speaker: Mark Caruso, Executive Chairman of Allied Gold

GARRETT: Relocation of thousands of people living on the Gold Ridge mine site has begun.

More than 300 houses will be built for landowners, 90 of which are expected to be completed by the end of this year.

Itinerant gold panners get a smaller package, which includes building materials and some assistance with food.

Allied Gold's Executive Chairman, Mark Caruso, says the first group of 130 gold panners have now been resettled 10 kilometres away, at Turarana.

CARUSO: That went very successfully, very smoothly with very little resistance, and was well embraced. We had four resettlement sites, the two major ones were ......and ....., and we are substantially advanced with housing construction at ....and start preparation on ..... relocation site. So in terms of progress we're very comfortable with that, and of course there's a total of around about 18-hundred that have to be moved, that's progressive of course, and in terms of those that will impact our immediate mining area, we should have all those all but moved by around about November, the end of November, early December. So we're very comfortable with how that's progressing.

GARRETT: Allied Gold has already spent 50 million Australian dollars on rebuilding the Gold ridge mine and expects to spend another $70 million before the end of the year.

Key equipment and facilities are expected to be in place within 6 weeks, preparation of the mine area and access roads is well advanced, and Mark Caruso says the company's training program is starting to show real results.

CARUSO: We're employing around about 500 people on the site, which approximately 375 of them are locals. So we're very comfortable with how that sort of labour buildup and development is working with the local workforce.

GARRETT: You have met the new Prime Minister Danny Philip and the new government has said that it wants to look at the tax system and to link taxes paid to the value of resources. What's your reaction to that?

CARUSO: I think it's a little bit premature for us to make any assessment of the government's aspirations in that regard. Accordingly I won't pass any comment specifically, but clearly the balance and the collection of taxes is very important to developing countries, and given that it's a fair and equitable application … companies would be in support of this.

GARRETT: When you met Prime Minister Philip what did you have to say to him?

CARUSO: Congratulations, I was the first to meet with him, as you know the political elections in any country can be very tiresome, and indeed it was a hard fought campaign which went down to the wire, and clearly I offered him our support in terms of continuing with the development of Gold Ridge, and we both agreed that it was a very significant a project for the country going forward, and would certainly be positive for the Solomon Islands in terms of its international perception. I think he's under no illusions as to the job in front of him, and having been there before I think he will have at least have had the experience, which should keep him in good stead to drive the country forward.

GARRETT: What are the issues you would like to raise with the government as it settles in?

CARUSO: Our main issue clearly is to ensure that due process that allows allowing our project, mining to develop in the Solomon Islands is both streamlined and developed to best world standards. And clearly mining is not a significant proponent or part of the economy at the moment, but clearly I think if we can demonstrate that this project can get off the ground smoothly with appropriate government support, which has been forthcoming to date from the previous Sikua government, then I think it will keep the country in good stead.