The Lands and Mineral Resources Ministry has suspended the mining lease for Amex Resources and if it can’t open again, the lease will be terminated, says Minister Filimoni Vosarogo.
He said the Lautoka-based company had not closed down.
They have sought a temporary cessation of mining lease as there have been recurring mechanical and technical challenges faced by the mining operation,” he said.
“We are informed that the temporary stoppage of operations will allow the company to undertake rectification works, and their rectification workplan will be closely monitored by the Mineral Resources Department (MRD) of the ministry.
“We have been informed that technical and mechanical issues have affected mine production which in turn has had a negative impact on the economics of the project and rate of return for Amex.”
Mr Vosarogo said they were working with the company to get the mine back in operation as soon as possible.
“The suspension of the mining lease is temporary as requested by Amex but their work will be monitored and if we are not satisfied with their engagement with us as the mining lease issuing authority, the plug will be pulled.
“The resources that is being mined is plenteous and if Amex isn’t able to do good its mining lease conditions, the mining lease will be brought to an end.”
Over 90 Amex Resources employees are without a job and Mr Vosarogo said that issue was being handled by the Ministry of Employment.
