Axiom Mining Company Limited has failed to fulfilled terms and conditions set out by the Ministry of Mines, Energy and Rural Electrification.
Minister of Mines, Energy and Rural Electrification, Hon. Bradley Tovosia informed Parliament yesterday.
Opening debate on the 2020 Appropriation Bill 2019, Mr. Tovosia said Axiom is yet to fulfill the terms and conditions given by the Ministry with regards to their nickel operation on San Jorge Island, Isabel province.
He said the conditions set were for Axiom Mining to produce an adequate exploration work report, an adequate commercial discovery report and that its mining lease application does not follow standard mining practices.
Axiom KB Ltd had applied for an export permit on 6 April 2019, but it was rejected by a letter from the Minister with advice from the Mines and Minerals Board on 17 July 2019, on grounds that the company has failed to acquire a provincial business license to operate on San Jorge.
Meanwhile, the Minister said to date Axiom Mining owes five million Solomon dollars to the Isabel provincial government.
According to the Minister’s statement, by notice of 18 October 2019, the Director of Foreign Investment Division had canceled the foreigners’ investment certificates for Axiom KB Ltd and Axiom Nickel SI Ltd, stating that Axiom KB Ltd and Axiom SI Ltd are no longer foreign investors.
FID has also imposed a penalty on the mining company on 29 November 2019, at an estimated 3.5 million dollars for breaching foreign investment regulations.
The Minister clarifies, Axiom has commenced litigation against the rejection of its export permit.