Interesting how the minister of Mines got a special mention in this article by SMMS
10 August, 2017
Press Release:
SMM Solomon Limited
Withdrawal from Solomon Nickel Exploration Project
SMM Solomon Limited, a subsidiary of Sumitomo Metal Mining Co., Ltd. ("SMM") has decided to withdraw from the nickel exploration project ("Solomon Exploration Project") it has been implementing in the Solomon Islands.
SMMS started its acquisition of prospecting licenses and exploration activities in 2005 and completed the activities in the prospecting license areas of Choiseul province and Isabel province in 2014 and it applied for the mining leases in three areas as part of integrated project ("SMMS’ Own Areas"). SMMS brought legal proceedings against Axiom KB Limited ("Axiom") and others regarding the international tender areas in Isabel province ("International Tender Areas") because the rights awarded to SMMS had been cancelled. The legal proceedings lasted 6 years until March 2017 and ended with neither SMMS nor Axiom being granted the rights over the International Tender Areas.
During this time, the nickel price tumbled and there is market forecast predicting continued harsh market conditions into the future, and the business circumstances of the Solomon Exploration Project changed significantly. As the result of our comprehensive review of such business circumstances, the final judgment in the legal proceedings and other factors, SMMS concluded that it is difficult for SMMS to implement the project that SMMS had sought to realize by integrating SMMS’ Own Areas with the International Tender Areas. SMMS has decided to withdraw from Solomon Exploration Project. As such SMMS will withdraw from all of its pending applications for mining leases regarding SMMS’ Own Areas and SMMS will cease operation of the company except for those remaining matters arising from the withdrawal.
We acquired the prospecting license after we obtained the surface access rights from the landowners of the prospecting areas in Choiseul and Isabel. SMMS was able to conduct exploration activities and employ local people during the exploration.
After we completed the exploration and waited for the result of the court decision, SMMS engaged in CSR activities with emphasis on Community Support activities and implemented 5 measures, Clean-up Campaign, Kiko-Clay Stove (a handmade efficient smoke less cooking oven made of local natural materials), Composting, Garden Vegetable Farming, and Home Nutrition Workshop toward building a sustainable healthy families and communities.
We are proud of having completed the exploration based on the Mines and Minerals Act in Solomon Islands.
We would like to make the following statement of appreciation.
We greatly appreciate to assistance and help of Solomon Islands Government, Hon. Prime Minister Sogavare and other PMs in the past, Ministers and officers of Ministry of Mines and Energy and Rural Electrification and other government organizations.
We also give great thanks to premiers and the officers of the provincial government of Choiseul and Isabel.
We are very grateful to the landowners in Isabel and Choiseul regarding our exploration activities and CSR activities and other related matters.
We will continue the scholarship system for the students in the prospecting areas of Choiseul and Isabel next year in 2018 as we have since 2012.
Going forward, we will work towards withdrawal under this announcement in accordance with the Mines and Minerals Act and other related matters.
Reference:
Yoritoshi Ochi
Managing Director
SMM Solomon Limited.
http://www.smm.co.jp/solomon/news/pdf/20170810.pdf
