Solomon Islands has formally granted Axiom Mining a lease over the San Jorge nickel deposit, paving the way for the ASX-listed company to start construction of the Isabel mine – one of the last known undeveloped world-class nickel laterite deposits.
The news sent Axiom’s stock surging 44% to A$0.14 a share on Wednesday, with the company affirming that its first shipment of ore is expected in the first quarter of next year.
“We are now able to commence the construction of the Isabel nickel project and the subsequent sustainable mining of this world-class asset. This is the first time that any company in the mining industry has been granted a mining lease for this project,” said CEO Ryan Mount.
Development and construction of the mine has begun, with upgrades of the exploration camp to a long-term mining camp having started. Roads and loading facilities are also being constructed.
The company is in “advanced” stages of finalising financing of the life-of-mine construction and development and said that negotiations should be concluded in the “coming weeks”.
The final government approval of the nickel laterite project comes at a time when companies are scrambling to invest in battery metal projects including nickel, copper, cobalt, lithium and rare earths, driven by the expectation that electric vehicle batteries will rejuvenate the sector.