10 Sep 2009

Solomons gold production to expand

6:51 pm on 10 September 2009

Solomon Islands second mining company, Pheonix International Mining Limited, looks set to begin gold production in Central Guadalcanal within the next six weeks.

This was confirmed by Pheonix Managing Director, Kelvyn Alp, during a trip to the capital Honiara.

Mr Alp says work on constructing the first plant at the mine site is ongoing, adding that before the year ends two more will be completed.

He says the mining investment has pumped in millions of dollars into the country and more will come in before the end of the year.

Mr Alp says it was an important step in their operations in the country as they aim to bring maximum benefit to local Solomon Islanders.

The granting of a mining license to Pheonix International earlier this year followed geological findings that proved the Balasuna area to have one of the largest gold reserves in the world.

Mining economists have projected that the annual return from the operation of Phoenix Mining stands at US$33-million annually and with the agreement canvassed for a 50/50 profit sharing in gold earnings.