28 Aug 2008

The re-opening of Solomon Islands only gold mine is facing further delays

6:49 pm on 28 August 2008

The re-opening of the Gold Ridge mine on Guadalcanal in Solomon Islands, which was shut down seven years ago by ethnic violence, has been further delayed.

The Australian financiers of Gold Ridge Mining Limited require a Political Risks Guarantee from the Government and the company.

The Solomons' Mines Minister, Edward Huniehu, says his Government is liaising with Canberra to sort the issue out.

The Political Risks Guarantee is a new requirement by financiers for companies operating in politically unstable countries.

Gold Ridge once earned a substantial portion of the Solomons' foreign exhcange.

It was due to re-open by mid next year, but this date has been set back to the end of 2009.