Solwara 1 project

Justice Polume-Kiele in her decision handed down on Thursday 17^th of September said under Section 51 of the Constitution, all citizens have a right to access public information.

The Mineral Resources Authority’s attempt to withheld key documents relating to the Nautilus Solwara 1 project was rejected by the Waigani National Court this week.

The National Court has given the all clear to communities and environmental groups to proceed lodging their claim to obtain key information on the Solwara 1 project.

Advocates say Nautilus’ aspirations to be the world’s first deep sea miner sink to the bottom of the ocean after MDL Energy’s purchase.

Dr. Helen Rosenbaum, of the Deep Sea Mining Campaign, said: “Nautilus’ Production Support Vessel (PSV) was the centre piece of their model of operation. Without the PSV it’s difficult to see Nautilus ever developing its Solwara 1 project. 

The company says it is in active discussions with third parties and financial advisors as it considers numerous financing structures and alternatives.

The company announced early this week that it has entered into an amending agreement with its advisor, M. Horn & Co. Ltd., to provide the services under the existing funding mandate agreement on a non-exclusive basis.

Nautilus said previously the advisor was engaged on an exclusive basis.

The company announced on Thursday that the SPV was launched at the Mawei Shipyard in China where it had been under construction.

Nautilus CEO, Mike Johnston, called the launch a significant milestone for the company and the deep water sea floor mining industry.

“Mawei Yard has designed and built the world’s first deep sea mining production support vessel in cooperation with Nautilus and Marine Assets Corporation. This has involved much discussion, thought and innovation, to produce this magnificent vessel,” said Johnston.

The Company announced last night that Wright’s resignation is effective as February 26^th 2018.

CEO Mike Johnston said Wright played a significant role over the last three and a half years in the areas of project management, stakeholder and government engagement and corporate social responsibility.

“We would like to thank him for the valuable contributions he has made to Nautilus’ progress to date and wish him well in his future endeavours,” said Johnston.

The company announced on Monday that it has arranged for US$7 million to assist its immediate working capital requirements and facilitate payments required to continue the development of the seafloor production system.

The seafloor production system will be first utilized at the Solwara 1 Project outside New Ireland Province.

Nautilus says the bridge loans are expected to form part of a larger secured structured credit facility of up to US$34 million (K104 million) to be provided by the lender on terms currently being negotiated.  

In its latest statement on December 20^th, the company says discussions with various parties and major stakeholders have taken longer than expected but the Company remains positive that the discussions will be concluded soon.

This follows on from its similar announcement on December 4^th where they also extended a funding deadline.

In September the company announced that an additional funding of US$41 million (K125 million) was needed before the year’s end to complete the build and deployment of the seafloor production system.

Sir Arnold Amet says it is understandable that Nautilus shareholders want to protect their own financial interests but new investors should beware - the Solwara 1 project is very high risk.

“The muddy puddle at the so-called test site at Motukea Island is not fit for purpose. It will not provide any evidence that these machines won't malfunction at the intended operating depth of 1.6km. The hulks are already deteriorating in our tropical conditions,” points out Sir Arnold.