Nautilus Minerals Limited which is currently operating the world’s first Sea Bed Mining in Papua New Guinea has announced, it is terminating its agreement with the State of PNG.
The government is understood to be aware and the Mining Minister Byron Chan could not be reached for comment.
A statement released by the company last week stated that contrary to the arbitrator’s award of October 2, 2013, the Independent State of Papua New Guinea had failed to complete the purchase of its 30-percent interest in the Solwara 1 Project.
It stated that in accordance with the State Equity Option Agreement signed by the parties in March 2011, Nautilus has terminated the Agreement and will now claim damages.
Nautilus said it continues to seek an amicable resolution of the dispute with the State.
The company is here to explore the ocean floor for polymetallic seafloor massive sulphide deposits.
It was granted the first mining lease for such deposits at the prospect known as Solwara 1, where it is aiming to produce copper, gold and silver.
It has also been granted its environmental permit for this site.
The statement further reads that the company also holds approximately 500,000 square kilometers of highly prospective exploration acreage in the western Pacific in PNG, the Solomon Islands, Fiji, Vanuatu and Tonga, as well as in international waters in the eastern Pacific”.
A Canadian registered company, Nautilus is listed on the (TSX:NUS) stock exchange and (OTCQX:NUSMF). Its corporate office is in Brisbane, Australia.
Its major shareholders include MB Holding Company LLC, an Oman based group with interests in mining, oil & gas, which holds a 28% interest, Metalloinvest, the largest iron ore producer in Europe and the CIS, which has a 20.75% holding and global mining group Anglo American, which holds a 5.95% interest.
PORT MORESBY, (POST COURIER)