Japan's Sumitomo mining company is abandoning its nickel exploration project in Isabel Province in Solomon Islands.
The head office of Sumitomo Metal Mining Solomon Limited in Tokyo told Reuters that it was exiting from the project because of slumping nickel price and the loss of a legal dispute over mining rights.
Sumitomo, which began exploring in Solomon Islands in 2005, had 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 the nickel deposit in Isabel Province.
The company said it would pull out from all the pending applications for mining leases by the end of December.
Sumitomo Solomon Limited has yet to make a public announcement about the withdrawal from Solomon Islands.