Tag Archives: Nautilus

PNG experimental seabed mining project another ‘failed investment’, says ex-minister

The proposed production method for Solwara 1 Project. Image Nautilus

Pacific Media Centre | November 14, 2018

The controversial Nautilus Solwara 1 deep sea mining project has been accused of being another Papua New Guinean government “failed investment” on the verge of bankruptcy, claim campaigners citing a former attorney-general.

In a statement by the Deep Sea Mining Campaign, former PNG Attorney-General and Minister for Justice Sir Arnold Amet is quoted as saying:

“Nautilus is propped up by US$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.”

“Even the production support vessel crucial to Nautilus operations has had to be shelved due to failure to pay the shipyard constructing it,” he said.

“And Nautilus is now virtually worthless with its shares at a new record low of less than 10c  each.”

Deep Sea Mining Campaign said Nautilus was still desperately seeking funds for its flagship Solwara 1 deep sea mining project, while its commercial operation had been delayed ever since it first received its licence to mine the floor of the Bismarck Sea in 2011.

As a final attempt to save Solwara 1, Nautilus’s two largest shareholders, Russian mining company Metalloinvest and Omani conglomerate MB Holdings, formed a new company to secure funding for the Solwara 1 project, but this rescue attempt has gone in vain.

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

Economic burden

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

Sir Arnold stated his position by urging the PNG government to terminate the contract with Nautilus so save the country’s money.

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

“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.”

Papua New Guinea is hosting the 2018 Asia Pacific Economic Cooperation (APEC) summi later this week, which is said to have been a huge financial load for the economically challenged country.

While the PNG government prepares for the summit, the country is going through many health crises including re-emerging of eradicated disease such as polio, violations of human rights against the people of Paga Hill, and extravagant spending for 40 Maserati luxury sedans, reports Pauline Mago-King of Asia Pacific Report.

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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.”

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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

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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.

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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.

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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?”

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Churches want to ban seabed mining

Benny Geteng | Post Courier | 4 September 2018

THE PNG Council of Churches has called for a total ban on seabed mining in the country.

The Council of Churches representatives from the United, Anglican, Catholic, Lutheran, Salvation Army, Seventh Day Adventist, Evangelical Alliance Church of Manus, Baptist and Body of Christ made their stance known after considering the seriousness of the activity on the seabed.

The representatives said in a joint statement that the seabed mining will only bring destruction to the ocean life; and people are being forced by developed industrialised countries to go along.

“The world is watching PNG and it will be a joke to the world if PNG says yes to this destructive monster in the absence of a relevant national policy and legislative framework on off-shore seabed mining.

“Following the Madang Guidelines concluded in 1999, we call on the National Government to ensure a separate policy and legislation is developed before off-shore mining including deep seabed mining activities is commenced in the country,” they said.

The representatives said the government should also clarify to the churches and the people of PNG as to what consultation processes have been undertaken to develop relevant policy and legislation governing off-shore mining.

Extractive Industries Transparency Initiative reports have highlighted that PNG is not getting its fair share of resource revenue and as such the churches have expressed concern that the States equity participation in the Solwara 1 project will be a waste of taxpayers’ money.

“We call on the government to be more focused on people development rather than profit development when making crucial decisions.

“The government must consult the people, ensuring citizens and the public are aware of the benefits and the negative impacts of these developments and allow them to make informed decisions on what the people think is best for them,” they said.

Nautilus Minerals Company is the developer of the Solwara 1 project located in the Bismarck Sea which will cover provinces such as New Ireland and East New Britain.

The National Government had obtained a loan of K400 million in 2014 from Bank South Pacific to acquire 15 per cent equity in the project.

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Nautilus Minerals Dives to New 12-Month Low at $0.11

Michael Baxter | X News Press | August 26, 2018

Nautilus Minerals Inc. share price hit a new 52-week low during trading on Friday . The stock traded as low as C$0.11 and last traded at C$0.11, with a volume of 14100 shares changing hands. The stock had previously closed at C$0.12.

See also:
Nautilus’ stock plummets as deep sea mining litigation proceeds
Nautilus Minerals tanks on shipbuilding contract cancellation
Anglo American divests from Nautilus over risks of deep sea mining

Nautilus Minerals Inc, a seafloor resource exploration company, explores and develops the ocean floor for copper, gold, silver, and zinc seafloor massive sulphide deposits. It also explores for manganese, nickel, and cobalt nodule deposits. The company’s principal project is the Solwara 1 project located in the Bismarck Sea, Papua New Guinea.

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