Papua New Guinea eyes full stake in sea floor mining

Solwara One site in the Bismarck Sea which Nautilus Mineral will mine

THE government will take its full 30% stake in the venture – worth more than US$100 million – that it hopes will be the first in the world to lead to mining of the sea floor, Mining Minister John Pundari said last Friday, The National reports.
Confirming the government’s recent granting of a mining licence to Canadian company, Nautilus Minerals, for a 59km2 section of the Bismarck Sea, at depths of about 1,600m, Pundari said the state had negotiated to purchase the full equity participation.
The Solwara1 site, as it is known, is off the coast of New Ireland and about 50km north of Rabaul.
He told Radio Australia the state’s 30% share would cost about US$103 million and would be bought over a three-four year period.
“We are looking at investing about US$27 million in the first year.
“We will also be acquiring an interest in the new technology.
“Our patent interest will be about 30% again and we are looking at purchasing 5% in the first year and the balance in the subsequent years.”
Nautilus also has sea floor exploration leases in the Solomon Islands, Vanuatu, Fiji and New Zealand.
It hopes to begin its commercial gold and copper operation in PNG by 2014.
Pundari also told the radio network that PNG would take a stake in the patents for Nautilus’s new mining technology.
“We will also be acquiring an interest in the new technology.
“Our patent interest will be about 30% again and we are looking at purchasing 5% in the first year and the balance in the subsequent years.
Asked where the government would get the finance from for its stake in the Naulius project, Pundari said the government was looking at nominating Petromin to carry the states interests.
He added that Petromin had access to the necessary finance and would be able to sign an agreement with Nautilus within the next 30 days.
The mining planned at the Solwarra 1 site in the Bismark Sea will be no small operation.
The gold and copper is found in high concentrations in massive sulphide deposits on the sea floor in 1,600mof water.
Each year, 1.3 million tonnes of ore will be cut from the seafloor and pumped to the surface in seawater slurry.
There, it will be dewatered before being moved onshore for processing.
Nautilus says it is well-advanced with the technology needed to mine the seafloor.