Name and Location
Solwara 1 seafloor copper/gold project, Papua New Guinea (PNG).
Client
Nautilus Minerals (70%) and the government of PNG (30%).
Project Description
Nautilus Minerals is pioneering the concept of mining the ocean bed for copper, gold, zinc and silver.
The company is exploring for high-grade polymetallic seafloor massive sulphide (SMS) deposits at 1 600 m below the surface of the Bismarck Sea, off the coast of PNG, within the Western Pacific Ocean’s Rim of Fire. The operation is planned to produce ore at a rate of more than 1.3-million tons a year, with the capacity to ultimately ramp up to 1.8-million tons a year of dewatered ore, which will be delivered to the Port of Rabaul.
Value
The total capital cost for the system to deliver dewatered ore on board barges to the Port of Rabaul, including a contingency (17.5%), is estimated at $383-million.
The operating cost, excluding the contingency, is estimated at $237 000/d, or about $64/t of mined ore, transported to the port based on a production rate of 1.35-million tons a year. Allowing for a 10% contingency, these operating costs become $261 000/d, or about $70/t.
Duration
The Canadian company aimed to start digging up a massive sulphide seafloor deposit from 2017.
Latest Developments
Nautilus has satisfied one of the conditions precedent to releasing $113-million, which its project partner – the PNG government – had paid into escrow in May, representing the balance of the State’s 15% share of capital required to complete the Solwara 1 offshore project up to first production.
Nautilus earlier this year resolved a project funding dispute with the PNG government and signed an agreement with the State’s nominee, Eda Kopa (Solwara), a subsidiary of Petromin PNG Holdings, under which Nautilus agreed to secure certain intellectual property rights and charter a production support vessel.
The company has secured the intellectual property rights for Eda Kopa and is focused on chartering the vessel.
“Discussions remain on track with potential vessel partners to obtain a suitable vessel arrangement within the timeframe required under the agreement, which will see the funds released from escrow,” Nautilus CEO Mike Johnston said.
Nautilus plans to use three huge robots, one of which has already been built in the UK and weighs about 310 t. The machines will cut into the seafloor with 4-m-wide claws, break the rock and collect it in a slurry that will be piped to a support vessel.
The remaining water and rock will be sent back down another pipe nearly all the way back to the ocean floor.
Key Contracts and Suppliers
Soil Machine Dynamics (construction and supply of two remote-operated SMTs); Technip (engineering, procurement and construction management services for the RALS components of the deep-water Solwara 1 mining and extraction system, comprising subsea pumps, a riser pipe, a riser handling system and associated deck equipment); North Sea Shipping Holding (supply of a specialist MSV); Harren & Partner (supply of a PSV); GE Oil & Gas (supply of a SSLP); SRK Consulting, Ausenco, Clough Engineering and Mineralurgy (offshore production system definition and cost study); Golder Associates (mineral resource estimate); Parsons Brinckerhoff (dewatering study); and Pells Sullivan Meynink (geotechnical laboratory testing programme and on-board ship laboratory, advice on rock mass and material parameters and slope-stability analysis for mining).
On Budget and on Time?
Nautilus has put the project on hold, owing to a dispute with its joint venture partner.
Contact Details for Project Information
Nautilus Minerals investor relations and communications VP Joe Dowling, tel +61 7 3318 5544 or email jjd@nautilusminerals.com.
Soil Machine Dynamics, tel +44 191 234 2222, fax +44 191 234 0444 or email info@smd.co.uk.
Technip, tel +33 1 47 78 24 00.
North Sea Shipping Holding, tel +47 55 08 88 00.
Harren & Partner, tel +49 421 46 86 0 or fax +49 421 46 86 586.
GE Oil & Gas, tel +1 203 373 2211.
SRK Consulting, tel +1 604 681 4196, fax +1 604 687 5532 or email info@srk.com.
Ausenco, tel +675 3256 033 or fax +675 3250 091.
Clough Engineering, tel +61 8 9281 9281, fax +61 8 9281 9943 or email clough@clough.com.au.
Mineralurgy, tel +61 7 3381 9295.