High Court Upholds Cancellation of APID Mining License

High Court upholds cancellation of APID’s mining lease over multiple breaches, including unpaid royalties and violations.

The High Court has dismissed an appeal by Asia Pacific Investment Development (APID) Limited against Deputy Prime Minister and Minister for Mines, Energy and Rural Electrification, Bradley Tovosia, upholding the government’s decision to cancel the company’s mining lease.

The mining lease, originally granted to APID in September 2014 during the Gordon Darcy Lilo administration for a 25-year term, was revoked by Minister Tovosia on 3 June 2021. The cancellation followed APID’s failure to adequately respond to a “show cause” notice issued on 21 April 2021, after the ministry identified several serious breaches of the lease conditions.

In his ruling delivered on 1 April 2025, Justice Howard Lawry found that the minister acted within his legal rights. “Having reviewed the matter de novo and based on the material presented, the decision to cancel the license was the correct one,” he stated.

The court held that APID, as the leaseholder, was solely accountable for breaches of the Mining Lease, despite subcontracting operations to Bintan Mining Solomon Islands (BMSI). Justice Lawry emphasized that legal and regulatory obligations under the Mines and Minerals Act remained the responsibility of APID, not its subcontractor.

Key breaches cited in the case included the non-payment of royalties for 15 bauxite shipments from Rennell, failure to comply with the terms and conditions of the Mining Lease and Mining Agreement, and violations of both the Mines and Minerals Act and its regulations. The company was also found to have breached agreements with landowners and local communities, including the Surface Rights Agreement and the Community Development Agreement.

APID’s appeal, filed by legal counsel Gabriel Suri and heard on 4 August 2021, challenged the validity of the “show cause” notice and argued that the minister’s decision lacked sufficient justification. The court rejected these arguments.

The ruling brings closure to a long-running legal battle over the controversial mining operations on Rennell Island.

Source: GCU