THE Ministry of Mines, Energy and Rural Electrification (MMERE) is developing a policy that will require mining companies to pay an Environmental Bond before commencing operations.
This move comes after it was revealed that the current Mines and Minerals Act 1990, Mines and Minerals Regulations 1996, and Environmental Act contain no specific provisions requiring such a bond.
Minister for Mines, Derrick Manuarii, confirmed this in Parliament this week in response to a question from the Leader of Opposition, Matthew Wale.
He said the policy will provide guidelines on how environmental bonds are calculated and establish a framework for their implementation.
“Under this policy, the Director of Mines, in consultation with the Director of Environment, will have joint authority to determine and assess the appropriate bond amounts and mechanisms to be put in place before and during mining operations and maintained throughout the project’s life,” Manuarii explained.
The minister also confirmed that no environmental bond was paid by Asia Pacific Investment Development (APID) during its bauxite mining operations on Rennell Island.
“We are working on it at the moment to create a provision for that,” he said.
In response, Opposition Leader Wale described the situation as “a terrible state of affairs and negligence of the worst kind.”
He criticised former Mines Minister Bradley Tovosia for failing to address the issue during his tenure by introducing a policy to ensure mining companies are held financially accountable for environmental damage.
An “environmental bond” can refer to two different concepts: a financial guarantee from a surety company to ensure a company follows environmental regulations, or a type of investment bond, like a green bond, that funds projects with environmental benefits.
The first type protects against damage from activities like construction or mining, ensuring remediation costs are covered if the company fails to act.
The second type, often called a green bond, is an investment instrument used to finance projects such as clean energy, sustainable agriculture, and conservation efforts.
By EDDIE OSIFELO
Solomon Star, Honiara