The government has already pumped $117 million of tax payer money into a project the mining company, Nautilus Minerals, admits is an experiment – with no guarantees its machines will even work, no guarantee of any profits and no way of knowing what the environmental impacts will be.
The financial markets are refusing to give Nautilus any more funding, so surely the PNG government will not be so stupid as to waste any more money trying to keep it alive?
KCHL tasked to look into Nautilus issues
Post Courier | July 06,2016
KUMUL Consolidated Holdings Limited has been tasked by the National Government to look into the issues that Nautilus Minerals has run into pertaining to the Solwara-1 project.
Petroleum and Energy Minister Ben Micah said yesterday he was aware that the project had hit a snag and that it had already begun talks with the Canadian miner with the view of a way forward.
Mr Micah had hailed the project as an important one for Government and had assured of its continued support to see the project through.
Nautilus Minerals Incorporated (Inc) in its market report which was released on June 29 stated that it required significant additional funding in order to complete the build and deployment of the seafloor production system to be utilized at the Solwara 1 Project by the company and its joint venture partner-the Independent State of Papua New Guinea’s nominee. The latter currently holds a 15 per cent stake.
Nautlilus stated that it is continuing its efforts to seek alternative sources of financing in order to maintain the development of the Solwara -1 project and its operations. It said there were no assurances that the company would be able to obtain the necessary bridge financing or project financing on acceptable terms or at all.
“Failure to secure bridge financing and/or project financing may result in the Company taking various steps aimed at maximizing shareholder value, including suspending or terminating the development of the seafloor production system and the Solwara 1 Project, and engaging in various transactions including, without limitation, asset sales, joint ventures and capital restructurings.”
“The Company’s independent directors will be looking to engage a financial advisor to assist them in this process,” the firm stated.
The Company said construction and development of the entire seafloor production system for initial deployment and testing operations at the Solwara 1 Project, was scheduled to occur during the first quarter of 2018. However, it added there was a possibility this may be delayed.
“The Company is unable to determine the extent of the delay at this time. The Company will provide updates as circumstances warrant.”