The Solomon Islands government's plans regarding Gold Dealer Licences form part of a wider effort to reform the country's gold sector and strengthen oversight, according to Mines, Energy and Rural Electrification Minister Derick Manuari.
Manuari said the government's policy direction had already received Cabinet caucus endorsement and was now progressing through the necessary legal and administrative processes.
Responding to recent criticism from Opposition Leader Matthew Wale, the minister rejected claims that the government's position on Gold Dealer Licences was misleading, saying licence cancellations represent only one component of a broader reform programme.
"This is not simply about cancelling licences. Government is implementing a comprehensive transition from the current Gold Dealer Licensing regime to a new framework that will deliver greater transparency, accountability, oversight and national benefit from our gold resources," Manuari said.
According to the minister, the government intends to move away from the existing Gold Dealer Licensing framework as part of efforts to improve governance of the sector. The reforms are also intended to support the establishment of a state-owned holding company that would facilitate government participation, investment, oversight and strategic management of the gold industry.
"The cancellation of existing licences is the final step in a process that includes due diligence reviews, legal requirements, transitional arrangements, and a stronger regulatory and commercial framework for the sector," he said.
Manuari said no new Gold Dealer Licences have been issued since the current government took office. Of the nearly 40 licences issued previously, only 10 remain active, while the remainder are undergoing compliance reviews and due diligence assessments.
"The Mines Division is undertaking comprehensive compliance assessments of all active licence holders. These reviews are necessary to ensure accountability and to address longstanding mismanagement that has undermined effective regulation of the sector," he said.
The minister said the reviews had identified a number of challenges, including difficulties in verifying the origin of gold, monitoring export volumes and values, obtaining records required for compliance purposes and ensuring licence holders meet statutory reporting obligations.
He warned that weaknesses in the existing licensing framework had exposed the government to potential revenue leakage, under-reporting and illicit trading risks.
"The current licensing framework has exposed the Government to potential revenue leakage, under-reporting, illicit trading risks and broader governance concerns. These are issues this Government is determined to address through meaningful reform," Manuari said.
He added that a lack of political commitment by successive governments to reform the sector had contributed to the challenges now facing regulators.
"The absence of political will by successive governments to reform and strengthen governance in the sector has created serious problems that we are now working to fix," Manuari said.
