Anitua, Axiom partner in Solomon Islands nickel project

PNG Local Lihir Island landowners company Anitua Group has now expanded into neighbouring Solomon Islands in a partnership with Australian mining company Axiom Mining to develop a nickel project.

According to newswire proactive investors Axiom Mining has entered into a strategic partnership with Anitua Limited, which is providing A$5 million (K10.4million) in funding to advance development of the Isabel Nickel Project in Solomon Islands.

The company has also been awarded costs of SBD$29.3 million (A$4.7 million) or K9.85 million by the Solomon Islands High Court in relation to its victory over Sumitomo.

Anitua is one of Papua New Guinea’s most experienced companies and is a highly experienced exploration and mining services contractor in the Pacific region.

Its clients include ExxonMobil, InterOil, Newcrest (Lihir Gold) and Ramu NiCo.

In addition to the unsecured loan of A$5 million (K10.4 million), the two parties have also agreed to negotiate arms’ length commercial terms for a range of services to be provided by Anitua for the Isabel project. This may include exploration drilling, construction, camp management and contract mining. The loan is repayable either in cash or in fully paid ordinary shares in Axiom at $0.02 per share, at the sole discretion of Axiom by no later than July 7, 2015. "This partnership is a strong endorsement of Axiom’s strategy to develop the nickel resources of Solomon Islands in a respectful and culturally sensitive manner," chief executive officer Ryan Mount said.

"It gives Axiom immediate access to funds to achieve project milestones, while Anitua gets the opportunity to provide the Isabel Nickel Project with contract mining services at market rates.

"There is a natural synergy between Axiom and Anitua—both companies are experienced in working with local communities in the Pacific, with a focus on collaboration and capacity building to ensure successful long-term operations."

Anitua chief executive officer Colin Vale added that the potential size of the deposit, Axiom’s ability to deliver on milestones and their collaborative approach with stakeholders gave Anitua the confidence to offer its services and provide capital for development of the project.

The Anitua Group was founded by a group of Lihir Island landowners of New Ireland Province in 1989 and currently employs over 3,500 people in PNG. It provides a breadth of services with the ability to provide complete end-to-end solutions in areas including contract mining, road work and civil construction, mine site support and earth moving, and mining training services.