Australian company beats Sumitomo to Solomons nickel.
Updated March 2, 2011
Presenter: Jemima Garrett, Sydney-based Pacific Economic and Business reporter.
Speaker: Ryan Mount, Axiom Mining's Managing Director
MOUNT: We approached the landowners, the true customary landowners of the land and we basically consulted them and took on board their concerns, their objections. We went away, we came back with a proposal and we simply coloured it to their desires and needs. Eventually after a lot of negotiation meetings, we came to an agreement. So that is simply how it is and more specifically, we have essentially granted them a 20 per cent interest in this potential project.
GARRETT: Axiom KB is the joint venture company between your company, which is called Axiom Mining and the landowners. It has perpetual estate title to the 45 square kilometres of land. What rights does that perpetual title give exactly?
MOUNT: Well, I just want to clarify, it's the trustees of the land that have the perpetual state and what they have done, they have granted Axiom KB a 50 year lease. The rights of that lease are, is essentially very close to being a landowner. It essentially gives exclusive access to land, it gives us the ability, subject to having the appropriate permits and licences to mine and develop the land in the way that we see fit. These rights are throughout the 50 years. It also gives us this ability to mortgage the land, not that we're going to go down that path, but what I am trying to stipulate is that it does give us some very, very strong rights.
GARRETT: The landowners have a 20 per cent share in this company. If they don't like what your planning, can they veto what you're planning?
MOUNT: Well, I'm not sure that veto. I just want to make clear that we've been very specific and detailed about which way we're going forward. We don't want to do anything unless their part of it and they agree with it. So they have board representation on this company and there is a continued consultation process. Axiom did not want to get involved unless the landowners were in agreeance with the way we want to go forward, but, yes, they are definitely a part of the planning consultation process.
GARRETT: So overall, what could this project mean to Solomon Islands in terms of jobs and income?
MOUNT: I think it's going to be absolutely huge. Again, if we can secure the prospect and mining licences, we believe it could potentially be somewhere around 60 to 70 per cent of the country's GPD going forward. In regards to jobs, there's going to be a lot of labour needed. It's going to also educate the local population workforce there. It's going to attract a lot of other services companies in and around.
GARRETT: Axiom is a relatively small company and none of your other projects involve nickel. What makes you think that you have the skill to see this project through?
MOUNT: Listen, Axiom is relatively small at the moment, but we've just recently undergone and a complete restructure. The company was relisted back on the stock exchange, we've got a completely new board and management team, we have an exceptional skill set now and they're all highly experienced. We are on a big recruitment drive just at the moment and later on today, we're about to make another senior appointment. We are very, very confident in the partners, commercial partners that we have. They are very, very experienced in nickel and specifically nickel lateritious. They are also very experienced in protecting the environment and have an exceptional track record on delivery on their business plan.
GARRETT: The Solomon Islands government does have an international tender process out for this deposit. Have you pre-empted that tender process?
MOUNT: No, we haven't. We did not participate in that international tender and there were various reasons why, but essentially, we had not confirmed our relationship with the landowners and we do know that the key to developing this project is securing an agreement with the landowners and as such, we hadn't secured it by the close of the international tender, so we did not tender.
GARRETT: Would it be possible for any other company to come now you have this lease?
MOUNT: Oh, it's possible, but the way that mines and minerals act is structured is that to secure a prospecting licence, you essentially have to have the landowners consent. Now that is essentially Axiom KB now and so anyone who would want to force their way in if I could say that, would have to have consent from Axiom KB.
