Name and Location
Solwara 1 seafloor copper/gold project, Papua New Guinea (PNG).
Client
Prospective marine miner Nautilus Minerals formed a joint venture (JV) company with PNG’s nominee, Eda Kopa (Solwara), in December 2014 to mine high-grade polymetallic seafloor massive sulphide deposits.
Nautilus formed the JV after receiving $113-million that had been placed into escrow in May of that year, after completing the sale of 15% of its Solwara 1 project to Eda Kopa.
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 aims 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.
Net Present Value/Internal Rate of Return
Not stated.
Value
The total capital cost for the system to deliver dewatered ore on board barges to the Port of Rabaul, including a 17.5% contingency, 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 aims to start digging up a massive sulphide seafloor deposit from 2017.
Latest Developments
The second of three seafloor production tools (SPTs), needed to mine high-grade polymetallic seafloor massive sulphide deposits at 1 600 m below the surface of the Bismarck Sea, off PNG, has been completed.
UK-based engineering firm Soil Machine Dynamics, of Newcastle upon Tyne, completed the mechanical and hydraulic assembly of its collecting machine following the assembly of its bulk cutter. Systems commissioning has now started.
The collecting machine is the lightest of the three SPTs, weighing 200 t when fully assembled. It is designed to collect material cut from the seafloor by drawing it in as seawater slurry using internal pumps and pushing it through a flexible pipe to the riser and lifting system, and onto the support surface vessel. The remaining water and rock will be sent back down another pipe nearly all the way back to the ocean floor.
“This is an exciting time for the company as we continue with the build of the seafloor production equipment, while work has also started toward the build of our production support vessel. We look forward to finalising the assembly of the third and final SPT, the auxiliary cutter,” Nautilus CEO Mike Johnston has said.
The auxiliary cutter is designed as the pioneering tool that prepares the rugged seabed for the more powerful bulk cutter.
Meanwhile, Nautilus entered into an agreement with Marine Assets Corporation in November last year to charter a vessel to deploy at the Solwara 1 project. The JV expects to take delivery of the vessel in late 2017.
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 platform supply vessel); 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?
Not stated.
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.