axiom in solomon islands, page-31

If I am reading this correctly, The Permanent Secretary to the Ministry of Mines and Energy in the Solomon Islands seems to have cancelled Sumitomo's letter of intent to prospect.

Sumitomo needs to wait for the result of "whether or not the Government will endorse to proceed with the letter of intent to grant a license still pending on the current Government?s blessing."

As long as Axiom KB has the lease registered with the government, Sumitomo is going to have to knock on their door and ask Axiom KB's permission to look on their property.

I know I am going out on a limb here, but if the SI government is cancelling the LOI with Sumitomo, combined with the defensive behavior of Sumitomo it makes me think that they are on the loosing end of this situation.


Sumitomo remain positive
Wednesday, 06 April 2011 10:20

BRADFORD THEONOMI

DESPITE CANCELLATION revealed two weeks ago by the Permanent Secretary to the Ministry of Mines and Energy who told the Public Accounts Committee, Sumitomo mining still remain positive to proceed. We are the lawful winner for the international tender for nickel mining license in Isabel, said Yoritoshi Ochi.

"Sumitomo is still the legal mining company granted with the award for the winning bidder ahead of three other bidding companies.

"The notification of award was signed on the 4th of October 2010 and was received on 5th December 2010?.

Since then there is no formal announcement made so far in welcoming the winning bidder for this international tender.
International tender was opened on the 27th July 2010 and closed 15th of September 2010.

"This is one of the reasons in creating confusion, as other three bidding companies might as well be waiting for the official announcement, said Mr. Ochi.

He further said that the cancellation was inappropriate, because Sumitomo did not receive any letter of notification with regard to the cancellation from the Government.

Mr. Ochi said the letter of intent signed by the Minister of Mines then, Mark Kemakeza on the 23rd of November 2010; received 5th of December clearly stated the permission given for Sumitomo to do consultation with landowners for a 12 months period over the Surface Access Agreement.

"The progress is going very well at the moment and still within the timeframe granted under the letter of intent.

"If we do receive the notification of cancellation as stated, we will surely take necessary legal actions against the relevant parties, he said.

"This excludes those landowners signing the contract with Axiom Company Limited from Australia; it is the rightful landowners who should be taking legal actions against those involved for misleading their own people".

Mr. Kemakeza had told Parliament late last year that because of the change of Government a cabinet paper has to be prepared, and whether or not the Government will endorse to proceed with the letter of intent to grant a license still pending on the current Government?s blessing.

He said this is a new government with a new statement policy on the mining sector in the Solomon Islands; the government needs to come out with its policy in relations to that before an approval can be given.