Tag Archives: experimental seabed mining

Nautilus Solwara 1 on the verge of bankruptcy as APEC Summit heads to Papua New Guinea

On 17-18 November, 21 heads of state will come to Port Moresby for the Asia-Pacific Economic Cooperation (APEC) summit. Set against a backdrop of debts and a declining economy the Nautilus Solwara 1 project speaks volume to another PNG Government failed investment that will be a further economic burden to the country.

Sir Arnold Amet, former Papua New Guinean Attorney General and Minister for Justice Papua New Guinea, “Nautilus is propped up by USD 15 million in loans from its two major shareholders, it’s been forced to reduce its workforce and to terminate contracts for the construction of equipment.”[1]

“Even the production support vessel crucial to Nautilus operations has had to be shelved due to failure to pay the shipyard constructing it.[1] And Nautilus is now virtually worthless with its shares at a new record low of less than 10 cents each.”[3]

Canadian company Nautilus is still desperately seeking funds for its flagship Solwara 1 deep sea mining project. Commercial operation has been delayed year after year since it received its licence to mine the floor of the Bismarck sea in 2011. In a last-ditch bid to finance Solwara 1, Nautilus’s two largest shareholders, Russian mining company Metalloinvest and Omani conglomerate MB Holdings, have formed a new company whose sole job is to secure funding for the Solwara 1 project [4]. However, their attempts have failed. 

Sir Amet continued, “Nautilus is due to repay the USD 15 million loans to Metalloinvest and MB Holdings on 8 January. How will it achieve this? There’s no likelihood of production starting until the end of 2019 or even later.”

“I’m really worried that the PNG Government invested heavily to purchase 15% of a company that will be a burden to our economy. Our country’s over-extended finances may have to contend with a 15% stake in Nautilus’ bankruptcy.”

Sir Amet emphasised, “Wiser investors such as Anglo American and Loews Corporation got rid of their shares early this year to reduce their exposure to risk[5]. The PNG Government should terminate its contract with Nautilus now before it sacrifices even more of our nation’s funds.”   

“In light of PNG hosting the APEC Summit at the end of this week it is important to highlight risky commercial ventures such as Nautilus Solwara 1 project that have used scarce public funds over environmental safeguards, regulatory frameworks and the livelihoods of our coastal peoples.”

________________________________________________________

Notes

[1] Management Discussion and Analysis of Financial Condition and Results of Operations, Nautilus Minerals, 10 August 2018 http://www.nautilusminerals.com/irm/PDF/2056_0/MDAfortheperiodendedJune302018

[2] ‘Nautilus notified of rescission of shipbuilding contract’, media release, Nautilus Minerals, 4 July 2018, http://www.nautilusminerals.com/irm/PDF/2049_0/Nautilusnotifiedofrescissionofshipbuildingcontract; ‘Nautilus Minerals tanks on shipbuilding contract cancellation’, Mining.com, 4 July 2018 http://www.mining.com/nautilus-minerals-tanks-shipbuilding-contract-cancellation/

[3] https://ramumine.wordpress.com/2018/11/05/nautilus-minerals-sets-new-1-year-low/

[4] Nautilus signs funding mandate with major shareholders, Nautilus Minerals press release, October 11 2017, http://www.nautilusminerals.com/irm/PDF/1929_0/Nautilussignsfundingmandatewithmajorshareholders

[5] ‘Anglo American to exit stake in deep sea mining company’, Financial Times, 5 May 2018 https://www.ft.com/content/ad58aee6-4fad-11e8-a7a9-37318e776bab

Advertisements

2 Comments

Filed under Financial returns, Mine construction

Nautilus and Barrick Gold guilty of double standards

International Mining Companies have Colonial and Racist Double Standards

A case study comparing the performance of Canadian mining companies in their home country to their performance overseas has found dramatic double standards.

The the study has been published by the prestigious Peter Allard School of Law at the University of British Columbia.

The report finds Canadian mining companies have been involved in major human rights violations in developing nations including slavery and forced labour, violence against unarmed protestors, sexual violence against women and gang rapes.

Despite the international condemnation of these actions, Canada has failed regulate the behaviour of its companies in their overseas operations.

The study provides a comparison of the regulatory regime for extractive companies operating in Canada versus that in Papua New Guinea.

The study shows how Canadian companies operating in Papua New Guinea, Nautilus Minerals and Barrick Gold, fail to maintain the same standards that apply in their home country.

The double standards apply across the whole spectrum of their operations including environmental assessment and consultation, forced evictions and other human rights abuses, violence and access to the courts, access to information and respect for free prior informed consent.

The report calls for mining companies to apply the same practices and standards across all countries where they operate and for accountability to be enforceable in their home nations.

Leave a comment

Filed under Environmental impact, Human rights, Papua New Guinea

Nautilus Minerals Sets New 1-Year Low

In August we reported on a record twelve month low at 11c. Now Nautilus has sunk another 30% to 7.5c

Nautilus Minerals Inc. shares have hit a new 52-week low. The company closed at C$0.075. 

This follows a previous 12-month low of 11 cents set in August this year.

The new low is just the latest in a long series of bad-news stories for Nautilus Minerals and it crisis hit plans to mine the seafloor in Papua New Guinea.

2 Comments

Filed under Financial returns, Papua New Guinea

China takes baby steps in the bottom of the Mariana Trench

The chubby, fish-like Qianlong-2 submersible is lowered from its mother vessel prior to a dive in the Indian Ocean. Photo- Xinhua.jpg

According to China’s oceanic authority, the next step for the country’s deep-sea technology is developing and testing a drilling facility named Shenlong, plus a mining platform named Kunlong and an information-sharing system called Yunlong.

Asia Times | October 22, 2018

China is getting closer to exploring the bottom of the ocean after a research mission deep in the Mariana Trench, the largest crack in the Earth’s surface that is more than 10 kilometers deep in the Pacific Ocean.

China’s oceanic research vessel Tansuo-1 returned to its home port of Sanya in southern China’s Hainan province last week, wrapping up a 54-day, 7,292-nautical-mile deep-sea research mission.

During the mission a team of 59 researchers remotely piloted and grabbed some close-up looks into the Mariana Trench.

Researchers from the Institute of Deep-sea Science and Engineering at the Chinese Academy of Sciences tested deep-sea equipment for geophysics, marine geology, geochemistry and marine biology.

Deep sea exploration vessel the Tansuo-1. Photo: Xinhua

During the expedition, two 7,000-meter-class deep-sea gliders operated continuously for 46 days, making it the only abyss-class glider in the world proven to be able to work continuously for an extended period of time under the sea.

A magnesium seawater fuel cell carried out two tests as the world’s first new metal seawater fuel cell tested in the 10,000-meter abyss. In addition, researchers also used a remote-controlled robot to complete high-definition live-streaming 10,000 meters down near the bottom of the trench.

Earlier this year, Chinese media reported the development of underwater platforms to be launched after 2020 to take samples on the bottom of the South China Sea, as well as plans to probe the Mariana Trench.

The People’s Daily has reported that China’s most advanced manned submersible, the Jiaolong, or “flood dragon” in Mandarin, was undergoing a retrofit at the National Deep Sea Center in the eastern coastal city of Qingdao.

Its next dive will be in the deepest part of the South China Sea, a central basin with an average depth of five kilometers. The Jiaolong can dive up to seven kilometers deep.

The launch of the Jiaolong is a landmark in China’s deep-sea exploration as scientists will be able to reach the sea floor for a closer look and complete refined sampling missions.

China is also developing a manned submersible that can dive to 11km and withstand the immense pressure with its sea trial scheduled in 2021, to “scour the bottom of the 11,034-meter-deep Mariana Trench,” according to the People’s Daily.

In April last year, the Jiaolong finished three dives in the South China Sea. It normally carries three people, a pilot and two scientists.

A dive usually starts around 7am and takes 10 hours. The three people inside can only move in a round, cramped space that has a diameter of 1.4 meters, said Gao Xiang, a senior engineer at the center.

According to China’s oceanic authority, the next step for the country’s deep-sea technology is developing and testing a drilling facility named Shenlong, plus a mining platform named Kunlong and an information-sharing system called Yunlong.

This equipment is expected to be finalized in 2020 and put into the South China Sea sometime after that.

Leave a comment

Filed under Exploration, Pacific region

Nautilus are you nuts!

 
Sccop NZ |12 October 2018

The United States Geological Survey reported that a magnitude 7.0 earthquake struck close to the proposed Solwara 1 deep sea mine in Papua New Guinea yesterday at 7am local time. This follows a magnitude 6.6 quake nearby in March.

Second large earthquake near proposed Solwara 1 site

Dr. Helen Rosenbaum, of the Deep Sea Mining Campaign said:

“Thankfully there have been no reports of damage or injury. However, this is the second large earthquake this year right near the Solwara 1 deep sea mine proposed by Canadian company Nautilus. It’s also in the vicinity of several other exploration tenements in the Bismarck Sea between East New Britain and New Ireland Provinces that Nautilus aspires to turn into seafloor mines.”

Dr. Rosenbaum continued:

“Can you imagine the damage and pollution that would occur if Solwara 1 and these other proposed deep sea mines become a reality? Nautilus plans to have a 1.6 km long pipe moving ore slurry from the sea floor to the surface. An Independent oceanographic assessment indicates that currents in Bismarck Sea would carry pollution from the Solwara 1 shorewards towards New Ireland province, the Duke of York Islands and possibly to the coast of East New Britain.

“Where are our emergency response plans?”‘ asks Jonathan Mesulam from the Alliance of Solwara Warriors and a local community leader whose village is located in New Ireland province, only 25km from the proposed Solwara 1 project.

“There is already great uncertainty about the environmental damage that will occur from the normal operation of Solwara But such serious earthquakes will cause a catastrophe! Nautilus’s equipment has never been tested under these extreme conditions. We have no capacity at either the provincial or national level to deal with such an event.”

Jonathan Mesulam continued:

“Papua New Guinea sits right on the Pacific Ring of Fire. What was our Government thinking by approving Solwara 1. And not only did they approve the project but they have also invested heavily to purchase a 15% stake in this experimental venture. The company’s only credible shareholder Anglo American divested itself of this dodgy project in May and Nautilus’s share price has now hit an all-time low. Why is our National Government still backing this loser?”

Leave a comment

Filed under Environmental impact, Mine construction, Papua New Guinea

NZ groups opposed to seabed mining plan prepare to go back to court

Debbie Ngarewa-Packer has been leading the fight against seabed mining. SIMON O’CONNOR/STUFF

Catherine Groenestein | Stuff NZ | October 9 2018

Opponents of a plan to mine ironsand off the Taranaki coast are hoping the Court of Appeal will set a precedent to discourage other companies with similar aspirations.

Kiwis Against Seabed Mining (KASM), Greenpeace, Te Runanga o Ngati Ruanui Trust, Te Kaahui o Rauru, Te Ohu Kaimoana (the Maori Fisheries Trust) and the Taranaki-Whanganui Conservation Board have all sought leave to cross-appeal on the High Court judgment that quashed Trans-Tasman Resources Ltd’s (TTRL) consent to mine the South Taranaki Bight seabed for ironsand.  

The court ruled that the Environmental Protection Agency’s decision to grant it a consent was unlawful. 

Two weeks ago, TTRL sought leave to take its case to the Court of Appeal.

“There were a number of points we raised that the High Court decision did not uphold, and the Trans-Tasman Resources’ appeal has given us the opportunity to challenge those decisions,” KASM chairperson Cindy Baxter said.

“This is obviously a precedent-setting case, it’s the first application for consent, and it’s important to have this precedent as strong as possible.”

She said there were other companies interested in seabed mining along the country’s West Coast.

In May, Offshore Ironsands Mining Ltd was granted permission for mining exploration inside a marine sanctuary set up to protect the endangered Māui’s dolphins off the coast of New Plymouth.

“Our cross-appeal is a logical step to take in this precedent-setting decision, as there are other seabed mining companies waiting in the wings. There are enough pressures on our oceans already without having to deal with the impacts of seabed mining,” Emily Hunter of Greenpeace said.

Te Runanga o Ngati Ruanui Trust is cross appealing on points including its mana whenua interest and rights and the EPA’s failure to take the cautionary approach required by the Act.

“We want to make sure that anyone else that comes in has to reach this extremely high benchmark, they’re not able to just bowl in without doing the research they’re required to do,” Kaiarataki Debbie Ngarewa-Packer said.

The iwi was disappointed the Labour Government had not included the mining programme in its move towards stopping oil and gas prospecting.

“We’re putting a lot of effort into fighting this sunset industry with absolutely shocking environmental practices, when we should be focusing on developing a progressive economy and energy sector we can all be proud of.”

Te Kaahui o Rauru and Te Ohu Kaimoana (the Maori Fisheries Trust) have jointly lodged a cross appeal.

Kaiwhakahaere (CEO) Anne-Marie Broughton said the process had been exhausting and expensive, but Te Kaahui o Rauru likened the protection of the sea to the protection of the marae.

“The ocean is a fragile and largely unknown ecosystem and the problem is that if we damage it, we don’t know how to fix it up again. We must stand up for our environment. There are other ways to grow a healthy and sustainable economy – seabed mining is not the answer.”

The Taranaki-Whanganui Conservation Board has also resolved to defend the High Court’s decision, as well as to seek leave to cross-appeal in order to have the High Court’s decision confirmed on other grounds.

“It’s disappointing that we have to continue to fight to protect our environment,” chairperson Brendon Te Tiwha Puketapu said.

A spokesperson from the Court of Appeal said Forest and Bird and the Fisheries Interests had also filed cross appeals.

No date had yet been set for a hearing.

Leave a comment

Filed under Environmental impact, Human rights, New Zealand

Wallis and Futuna rejection of seabed mining welcomed by Pacific NGOs

Photo: AFP

Radio New Zealand | 24 September 2018

A decision by traditional leaders in Wallis and Futuna to reject work related to seabed mining has been welcomed by a regional body of non-government groups.

Earlier this month the kingdoms on the French Pacific island of Futuna ruled out allowing any further exploration of the seabed in their waters, saying their stance is final.

The Pacific Islands Association of NGOs ,or PIANGO, said it stands with community and church groups around the region who call for a ban on seabed mining.

PIANGO director Emele Duituturaga said there were environmental concerns and also a lack of clarity around the financial benefits that resource owners will directly receive.

She said in the current geo-political environment and age of cheque-diplomacy it is important for the voices of the people to be heard.

“Now is the time for traditional leaders and our indigenous peoples, who are the main owners of our resources, to stand up and be counted.”

Emele Duituturagasaid the lessons and experiences of mining in the Pacific should be heeded when contemplating exploration of the seabed.

She said there should be a ban on seabed mining around the region, and that the same environmental and benefit issues surrounding terrestrial mining, exist around seabed exploration.

“We’ve not really seen any income from terrestrial mining. We’ve also seen the environmental degradation so we doubt very much that seabed mining will be any different.”

French scientists have visited the territory and said the question of underwater mining will remain.

Five years ago, the French Economic, Social and Environmental Council urged the government to secure resources in the seabed off France’s overseas territories.

Leave a comment

Filed under Environmental impact, Financial returns, Human rights, Pacific region