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[Ferro-Alloys.com]A small Australian mining company has been stripped of its rights to one of the Pacific's biggest greenfield nickel laterite deposits, after a decision by the Solomon Islands Court of Appeal.
ASX-listed Axiom Mining (ASX code AVQ) has been involved in a five-year battle with Sumitomo Metal Mining (SMM) Solomon Islands Limited for control of the deposit in Isabel Province.
In a unanimous ruling by three overseas judges, the Solomon Islands Court of Appeal quashed ministerial approval of Axiom's prospecting licences.
The action followed the court's finding that the transfer of land registration to Axiom's landowner partners had not been completed properly and so was invalid.
"It is a setback, but it is not a major or material setback from our point of view," said Axiom Mining's chief executive officer Ryan Mount.
'Most important case' on land since independence
The court decision brings an end to Solomon Islands' longest-running and most expensive court case, but has not ended the battle to control the nickel deposit.
Axiom KB, a joint venture between Axiom Mining and landowners, in which landowners hold a 20 per cent stake, has already lodged a new application for prospecting licences.
It is the only company with activity on-site and had been hoping to begin ore exports this year.
Sumitomo was not available for comment but is expected to continue its fight for access to the deposit.
John Sullivan, the principal of Sol-Law, a Honiara-based firm which represented Sumitomo and landowners supporting Sumitomo's bid, said his landowner clients have had a great victory.
"They are ... the only complete winners in the case," Mr Sullivan said.
"The most critical thing is that customary land can only been converted to registered land in strict compliance with the statutory procedures.
"On the land side, I think it is the most important case since independence."
Mine battle now moves from courts to government
The Solomon Islands Government has also welcomed the court decision.
"With the legal battle now out of the way, the Government, through the Department of Mines, can now start the process of ensuring a reputable mining company develops the nickel project," it said in a statement.
Axiom CEO Ryan Mount said the court did not issue any adverse findings against his company and the Government statement may have been issued without the necessary permissions.
"Our conversations with the Prime Minister's office have been somewhat apologetic for that (statement) and I dare say there will be a clarification," he responded.
"In actual fact, the Government has said they are looking forward to our reapplication (for prospecting licences) which we have already lodged," Mr Mount said.
Sumitomo may also apply for licences at the disputed site, but would have to relinquish licences for other prospects to meet the strict three-licence limit.
Axiom is confident its project will continue and expects delays to first exports of up to 4 months.
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- [Editor:Sophie]
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