Sumitomo Seeking legal action against Mines and Mineral Board....

Sumitomo Seeking legal action against Mines and Mineral Board.

Friday, 06 May 2011 13:39 BRADFORD THEONOMI

THE MINES and Minerals Board may face legal action from Sumitomo Metal Mining Solomons (SMMS) for issuing prospecting license to an Australian Mining Company Axiom KB. Sumitomo Managing Director Yoritoshi Ochi told this paper in an exclusive interview that the board ignored Sumitomo as the winning bidder and instead considered Axiom.

"The board revoked the LOI awarded to us. It was however based on the cabinet decision made on the 17th of January 2011, that Sumitomo could not get support from landowners within three months of LOI period."

"However, the cabinet does not have a power to revoke decision of the Mineral Board.

"We've received no notification of the cancellation notice that the LOI granted to us through international public tender. And we are seeking legal action against the mines board for mishandling the matter; granting Axiom the LOI and the prospecting license."

"The LOI granted to us is still valid according to the law and legal procedures of the international tender and we will take every necessary legal step to ensure that justice is prevailed if it is necessary," he added.

"International tender selected Sumitomo and due to some reasons it was disqualified.

What the Mineral Board has to do is to recall an international tender or negotiate with the second winning bidder.

This is common sense or rule of international tender, however the Mines and Mineral Board ignored this principal", said the Managing Director.

He added that Axiom did not participate in the tender; they are a junior mineral explorer and no technological know-how even to develop mine.

"What's more important thing is according to tender requirement is an investor to encourage the development of mine and associated mineral processing facilities."

The government of Solomon Islands earlier rejected claims and validity of a prospecting license being issued to Axiom KB over the nickel and cobalt deposits on Isabel.

In its statement the government said the circumstances under which a former Minister of Mines, Energy and Rural Electrification issued both the Letter of Intent on 12 April and a Prospecting License three days later on 15th April this year was highly suspicious.

'This is more so when the Prospecting License was issued on the eve of his dismissal,' the statement said.

"Prospecting License, according to the Mines and Minerals Act, is normally issued within three months of the issuance of the Letter of Intent (LOI).

The purpose for such a legal provision is to ensure that the applicant would need time to successfully negotiate a Land Access Agreement with landowners," it said.

"Unfortunately, this has not been the way the minister had dealt with Axiom."

However, Mr. Ryan Mount CEO of Axiom said that he has not received any official notification on the status of his prospecting license and he is continuing with Axiom's project rollout.

This is despite a statement from the Prime Minister's Office rejecting the validity of Axiom's prospecting license in Isabel Province.


http://www.islandsun.com.sb/index.php?option=com_content&view=article&id=2696:sumitomo-seeking-legal-action-against-mines-and-mineral-board&catid=36:latest-news&Itemid=79