Tag Archives: Axiom

Nickel mining set to start on Solomons’ San Jorge island

Axiom drilling activity on Isabel Nickel Project.

Radio New Zealand | 6 October 2018 

Nickel mining is finally set to commence on San Jorge Island in Solomon Islands’ Isabel Province.

An Australian company, Axiom, this week announced that mining will begin in December.

It said the mine’s first nickel ore shipment was expected to be made in the first quarter of next year.

Axiom, which was granted a lease by the Solomons government last month, said it was close to finalising finance for its project.

According to the company, it is in “advanced stages of negotiations with a number of parties” who are potential partners in the mine.

On the back of Wednesday’s announcement, shares in Axiom Mining rose sharply on the Australian stock exchange.

Isabel is considered to possess one of the largest clusters of nickel laterite deposits in the Pacific.

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Axiom says near supply agreement for Solomon Islands nickel mine

Axiom drilling activity on Isabel Nickel Project.

Melanie Burton | Reuters | October 3, 2018

Australia’s Axiom Mining on Wednesday said it was close to deciding on a partner to take nickel ore supplies from its mine in the Solomon Islands in exchange for finance.

Mining at the San Jorge project in the Pacific nation will start in December, with ore shipments expected to begin in the first quarter of next year, Axiom said in a statement.

The Solomon Islands approved a mining lease last month and ore loading facilities are currently being built, the firm said.

A previous mine finance arrangement with Gunvor Singapore, for A$5 million ($3.6 million) in funding and up to A$10 million towards mine construction, that was made in 2015 has now expired, Axiom said.

“With the recent grant of the mining lease there has been an increase of interest and demand from nickel ore consumers for Axiom’s San Jorge material,” it said.

The San Jorge mine is a nickel laterite ore deposit.

“Terms and conditions of proposed agreements continue to be refined and are in a final stage of negotiation,” Axiom said, without giving further detail. ($1 = 1.3953 Australian dollars)

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Axiom granted mining lease for Isabel nickel project in Solomon Islands

Imelda Cotton | Small Caps | September 20, 2018

Axiom is now fully permitted to commence mining of the Isabel nickel project (San Jorge), with first shipment of ore expected in Q1 of 2019.

Minerals explorer, via its 80%-owned subsidiary AxiomKB, has been formally granted a mining lease by the Solomon Islands government for the San Jorge nickel deposit, which sits within the company’s flagship Isabel nickel project.

The 25-year lease has been issued for the extraction, export and sale of nickel ore and associated commodities from San Jorge and allows Axiom to commence construction at Isabel, with a view to commercial production in early 2019.

In awarding the lease, Solomon Islands Minister for Mines, Energy and Rural Electrification Bradley Tovosia commented on Axiom’s contribition to the local region.

“The Isabel project is to be an important part of our economy, and it is exciting to see real production now moving forward for everyone’s benefit,” he said.

Upgrades of a temporary exploration camp to a long-term mining camp have commenced, in addition to the construction of supporting roads and loading facilities.

Community consultations are also underway in preparation for the first shipment of ore.

Financing for life of mine construction and development is in the advanced stages and due to be finalised over the coming weeks.

The Pacific’s largest nickel deposit

The Isabel nickel project is widely considered one of the largest nickel laterite deposits in the Pacific region, hosting a historical non-JORC deposit of 159 million tonnes at 1.1% nickel and 0.07% cobalt.

It comprises a number of deposits within the Solomon Islands’ Isabel province, including the key deposits of San Jorge and Kolosori, operated by AxiomKB (Axiom 80% ownership) in partnership with local landowners (20%).

Both are spread over 36 square kilometres each, with San Jorge accounting for approximately 50% of the known deposits within the Isabel acreage.

The deposits at San Jorge sit very close to the surface in uninhabited land along a shore which encompasses a natural deep water harbour – all qualities which will enable Axiom to bring a direct shipping of ore operation to the market in a timely and environmentally-acceptable way.

Project history

Axiom’s milestone signifies the first time in the Isabel nickel project’s history that an owner has been granted a mining lease.

Previous San Jorge tenement owner and former nickel major, Inco Ltd (now owned by Brazilian mining giant Vale) conducted feasibility studies during the 1970s based on results from over 7000 drill holes and pits and 10,000 samples.

In 1991, Kaiser Engineers completed its own study on Inco’s data, determining preliminary capital and operating expenditures and conducting economic analyses and financial modelling.

Development by either owner did not progress further due to a failure to win the support of customary landowners from the Kolosori and Bungusule tribes.

In December 2010, Axiom’s collaborative approach resulted in a partnership with the landowners and the Axiom KB joint venture was established. Then in September 2014, AxiomKB emerged successful after three years of litigation proceedings instigated by Sumitomo Mining Metals Solomon over the Isabel nickel deposit.

Last month, Axiom announced it would be recruiting key positions and growing its board of directors to enhance its operational expertise and strengthen its position during the project’s development.

At midday, shares in Axiom were trading 34.02% higher at $0.130.

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Miner’s withdrawal from Sols prompts call for better regulation

Dateline Pacific | Radio New Zealand | 17 August 2017 

The Solomon Islands’ Chamber of Commerce has expressed regret over the withdrawal of the Japanese mining giant Sumitomo.

The miner announced its departure from the country earlier this month, citing the slumping nickel price and the loss of a legal battle over mining rights.

Sumitomo began exploring in the Solomons in 2005, but became embroiled in a six-year dispute with Australia’s Axiom Mining.

The battle ended this year with neither company being granted the right to a nickel deposit in Isabel province.

The chief executive of the Chamber, Dennis Meone, told Koroi Hawkins it’s unfortunate that a major international investor has departed having spent most of its time and resources in the courts.

DENNIS MEONE: I think it is a pity that as a country we could not take advantage of what Sumitomo could offer. It is a huge loss for the country and I think we are missing out big time. You know imagine how many Solomon Islanders would have been employed by they company. You know the spin-offs in the economy. Service providers that benefit. And of course the resource owners benefiting from it. So I think we have missed out big time. You know Koroi to put things into perspective our economic base in the Solomon Islands is very narrow and our growth our economic growth is mainly driven by a single industry which is mainly the logging sector. So there is the need to broaden our economic base by exploring and venturing into other areas or sources of growth and the mining sector is a good example of a sector that could sustain growth and provide the needed jobs and spin-offs for the economy. So I think with Sumitomo’s withdrawal I think we are losing big time. I think if you also look at our population growth you know one of the highest in the region if not the world. But by 2015 our population growth would double to around 2.1 million. And I guess providing that employment opportunity for our growing population is important but that can only happen if we encourage foreign direct investment flowing into the country. So I guess we have missed out an opportunity to really get the huge investment such as Sumitomo to get going.

KOROI HAWKINS: Yes and it has left under a bit of a cloud hasn’t it? It has cited the price of nickel continuing to plummet but also it has been embroiled in a lengthy court battle which resolved this year but without any really conclusions in terms of either according it the mining rights or the prospecting rights for the  nickel deposit on Isabel or its competitor Axiom.

DM: You know I think for foreign companies that are coming here and to spend so much time in court case and all this it is a waste of resources and I think this is something that we as a country and stakeholders the government the business sector, the private sector can actually learn from and ensure that I think within our internal processes within government we just have to make sure that we actually encourage growth and we do not you know with all our regulatory systems [they] are transparent and robust so that we do not actually go through this case again because it is actually. Everyone is losing out. They are losing out but also I think as a country we are losing out on this opportunity to actually get something happening in the economy.

KH: It is not the first company to come into strife in Solomon Islands. You have the Gold Ridge gold mine which has had issues in the same sector.

DM: Yes, yes.

KH: You have got RIPEL plantations in Yandina that is a long running industrial dispute. Is there an issue with Solomon Islands in terms of accommodating foreign investment?

DM: No I think it is basically down to us as a country and I say this generally, you know the government needs to be working closely with the private sector and I think there is the need to actually, we have always advocated for the private sector advocate for a conducive business environment and I think that is where government can really make a difference by shaping policies and frameworks that could encourage growth and investment. So I think there is the need but also the genuineness for us to actually get together it is just we haven’t. And this is something the government and us the private sector needs to sit down and talk through some of these issues because if we want to encourage growth in the economy we also have to understand that you know these companies are actually putting in resources into it and it is an investment for them. So at the end of the day we also have to make sure that all our systems or we actually, all our systems are transparent and ensure that we are doing the right thing to provide a conducive business environment you know to encourage investment in growth and innovation.

KH: Is there any reassurance you can give to foreign investors out there given, in the light of Sumitomo’s withdrawal?

DM: Yes, Solomon Islands is a good place to do business, things do come up, and with the case of Sumitomo it is something that I wont comment on because it is something that was before the courts. But there are so many opportunities in the Solomon Islands and one of the things that the Solomon Islands Chamber of Commerce is doing is talking to governments on police issues that are affecting the private sector. And we have just recently signed our memorandum of understanding with the Solomon Islands government which would provide a formal platform for us to engage on policy dialogue with governments. So I guess that in itself is a platform that we can build on and so yes there are business opportunities in the Solomons and you just need to pick which areas investment can happen in.

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More mining companies interested in Solomon Islands

Photo supplied. Caption: Mining exploration in Solomon Islands.

Charles Kadamana | Loop Pacific | August 17, 2017

More mining companies have shown their interest in nickel exploration after the Japanese firm Sumitomo Metal Mining (SMM) announced it is withdrawing from Solomon Islands.

One of them is Sunshine Minerals while two others are yet to confirm.

Sunshine Minerals has been granted a letter of intent by the Solomon Islands Ministry of Mines for its application for a prospecting licence over the Jejevo deposit in Isabel province and a prospecting licence is expected to be issued in due course.

The current mining company which still has interest is Axiom, despite not being granted the rights over the International Tender Areas after a legal battle with SMM.

Government Minister and Member of Parliament for Gao/Bugotu constituency, Samuel Maneto’ali, who has the political leadership over the area, said more mining companies are trying to come in after SMM withdrew.

He said he was not aware of SMM’s withdrawal until last week so he is not sure the reason behind the company’s decision to pull out.

“We missed the best mining company,” he said.

Maneto’ali said the country has lost one of the best mining companies because it has 400 years of mining experience and they have all the expertise and experience to carry out mining.

“They have good standing in environment assessments because they have the technology. There we missed the best mining company,” he said.

He said since they have withdrawn the only thing is to find other interested companies. He said since Solomon Islands lost one of the best mining companies the landowners must comprise.

“They must organise themselves and agree to the best company not to lose any more interested investors like Sumitomo,” he said.

Sumitomo Metal Mining (SMM) has withdrawn its nickel exploration in Solomon Islands because of slumping nickel prices and the loss of a legal dispute over mining rights.

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Sumitomo Metal Mining exits Solomon Islands nickel exploration project

solomon-islands-parliament

Solomon Islands coat of arms on Parliament buildings in Honiara Photo: RNZI / Koroi Hawkins

Yuka Obayashi | Reuters | 9 August 2017

Japan’s Sumitomo Metal Mining Co Ltd. said on Tuesday it will exit from a nickel exploration project in the Solomon Islands because of slumping nickel prices and the loss of a legal dispute over mining rights in the country.

Sumitomo Metal Mining, which began exploring in the Solomon Islands in 2005, has been caught up in a six-year legal battle with Australia’s Axiom Mining, which ended this year with neither company being granted the rights over a nickel deposit in Isabel province, it said.

“As a result of our comprehensive review of business circumstances, the final judgment in the legal proceedings and other factors, we have concluded that it is difficult for us to implement the project,” Sumitomo Metal said in a statement.

“We will pull out from all of the pending applications for mining leases,” a company spokesman said, adding the withdrawal will be completed by the end of December.

The Japanese miner declined to disclose its exploration costs and the cost of the legal battle, but said the exit will have a minor impact on its earnings for the current financial year to March 2018.

“During the legal proceedings, nickel prices have plunged. But even if the market picks up, it would be difficult to conduct the project as the social and legal system has not been developed in the Solomon Islands,” the spokesman said.

Sumitomo Metal has said it aims to increase its nickel output from its mine holdings to 150,000 tonnes a year in 2021 from the current 100,000 tonnes.

“We’ll continue to seek new nickel assets through projects in the Philippines and Indonesia, among others,” he said.

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Axiom Mining ups raising thanks to nickel price surge

nickel mine

Similar to the Ramu nickel mine in PNG, Axiom Mining is planning an open-cut nickel mine in the Solomon Islands

Brian Robins | Sydney Morning Herald | August 1, 2016

Hard on the heels of Independence Group’s decision to tap into the surge in the price of nickel by raising funds via a sharemarket placement, minnow Axiom Mining has followed suit as it prepares to launch production at the end of the year.

Axiom has its foot on ready to mine acreage in the Solomon Islands which it hopes can take advantage of the supply interruption for laterite nickel shipped to China.

Following the recent Philippine presidential elections, there has been a halt to production at several nickel mines there due to environmental concerns which has pushed the nickel price higher.

The supply disruption in the Philippines follows the move a couple of years ago by Indonesia to halt all exports of nickel ore, as New Caledonia, too, has had a long-standing ban on exporting to China. Each of these three countries are large producers of laterite nickel which is sought after by Chinese processors, and between them they control an estimated 80 per cent of the lateritic nickel ore globally, and virtually all of the material available in Asia.

Axiom is re-applying for tenements held on the island of Santa Isabel following lengthy litigation with Sumitomo Metal Mining, the large Japanese integrated metals group. As it awaits the outcome of this process, which should become clear within the next few months, it is moving ahead with plans to develop acreage held on the adjacent island of San Jorge, targeting an initial 1 million tonne a year output of ore, rising to 2 million tonnes a year by 2018.

The reserves are shallow, at less than 20 metres with no geological faulting making mining a straightforward proposition. Construction and commissioning costs for an operation of this size is estimated at $US25 million ($33 million) while off-take agreements are also in place.

To get the ball rolling, Axiom sought to raise an initial $3 million late last week but strong investor demand saw this lifted to $5 million, issuing shares at 28¢ with an attached option. Initially it planned to outlay $2 million on a drilling program with $1 million needed for working capital, although it is likely to seek to accelerate its anticipated start to production.

“Indonesia and New Caledonia are not shipping to China,” Axiom chief executive Mr Ryan Mount said, and there is a question mark over future export volumes from the Philippines. “We are the only listed nickel laterite company on the ASX.

“We’re the biggest beneficiary of anyone in Australia.”

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