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http://www.solomonstarnews.com/news/national/19313-mining-battle-court-heard-former-minister-delays-awarding-of-letter

29 October 2013

FORMER minister of mines and energy, Mark Kemakeza has issued an award and Letter of Intent (LOI) to Sumitomo Metal Mining (SMM) in 2010.

John Sullivans of Sol-Law, which represents SMM, made this clear in his submission in High Court yesterday.
He was defending his client against Australian based company Axiom mining over which company will be developing Nickel deposits on the Island of Isabel.

The trial began last Friday and is expected to last for eight weeks.

Mr Sullivans said the screening committee which consisted of officers in the ministry of mines plus finance permanent secretary, Shadrach Fanega and a representative from SOPAC has selected Sumitomo ahead of BML and WY International.

He said the mineral board then approved Sumitomo and recommended 12 months LOI over tender areas.
However, he said Kemakeza was reluctant to follow the board’s approval and recommendation and did not want to give the award and LOI to Sumitomo.
He said Sumitomo believing it had won the tender became increasing concerned of the delay.

Mr Sullivans said Ochi wrote three times to Prime Minister in November 2011.
“Finally Kemakeza met with Ochi and handed over the award in 4th October 2010 and LOI in 23rd November 2010.
“Newyear, Auga and Tolia were present,” he said.

The court is expected to hear submissions from the other parties namely Axim, Government and landowners in the coming days.

The hearing before Justice John Brown continues 9.30am today.