MRA noted the Australian Security Exchange announcement last Wednesday released by Indochine in relation to former EL (exploration licence) 1093, which was held by SDC since 2010.
According to the announcement, Indochine was considering legal actions following Mining Minister Byron Chan’s refusal to award SDC to renew licence EL1093.
The company said it was disappointed that it was not advised that its application was refused and the reason for the refusal, which may have provided the company an opportunity to deal with the reasons.
It said this was after they had completed all key milestones required by the Mineral Resources Authority.
Mineral Resources Authority managing director Philip Samar said Indochine made 21 points in relation to the tenement renewal process for EL 1093 , which included:
At the end of the term of the tenement (28 August 2014), amongst other matters of non-compliance, there was a sum of outstanding compensation owed by Summit to Mt Kare landowners pursuant to conditions in the EL 1093 licence. This outstanding compensation was consequently paid by the administrators in mid-2015;
Mineral Resources Authority wrote to Summit, at its registered tenement holder address in Port Moresby, on 8 January 2016 notifying it of the Minister’s decision and enclosing a copy of the signed and dated refusal instrument.
the Mining Act does not require the notification of a tenement extension refusal, nor is there a Mining Act obligation to provide reasons for such a decision; and,
Mineral Resources Authority can confirm it has received from Summit a new application for the ground at Mt Kare, but under the system of first in time priority under the Mining Act lodgement regime, this application is currently the 4th application received.