Name of the Project
Solwara 1 seafloor copper/gold project.

Location
The project is located in the Bismarck Sea of Papua New Guinea (PNG).

Project Owner/s
Nautilus Minerals and the PNG government.

Project Description
The Solwara 1 project is a deep-sea mining project where construction of a commercial-scale mining operation to extract deep-sea metallic mineral resources is well advanced.

The target mineral resources at Solwara 1 are located on the seafloor, about 1 550 m below sea level, and are covered with a thin layer of unconsolidated sediment.

The conceptual plan envisions recovery of an estimated 130 000 t of copper and 180 000 oz of gold from Solwara 1. The plan further envisages the extraction of indicated and inferred mineral resources containing copper and gold at copper grades significantly higher than most terrestrial mines.

The depth and relative competence of the massive sulphide deposit do not make it amenable to extraction using dredge technology.

The project envisages the removal of sediment, rock cutting and transferral of fragmented cuttings to surface, performed by three seafloor production tools and a positive displacement pump, collectively known as the seafloor production equipment. The equipment will be remotely controlled by operators located on board a surface vessel stationed over the deposit.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 15% discount rate, of $56-million and an internal rate of return of 28%.

Capital Expenditure
$530-million.

Planned Start/End Date
The PEA targeted the start of first production in the third quarter of 2019.

Latest Developments
According to Deep Sea Mining Campaign PNG PM James Marape has supported Fiji's call at the Pacific Islands Forum for a ten-year moratorium on seabed mining. Marape’s support for a moratorium has been welcomed by the PNG Council of Churches.  However, the churches and civil society have reminded the PM that the environmental, social and economic risks of seabed mining necessitate a complete ban. 

An open letter to Marape published in June by the PNG Council of Churches, Voice of Milne Bay, Alliance of Solwara Warriors, Bismarck Ramu Group, and the Centre for Environmental Law and Community Rights seeks – commitments to cancel all licences issued to Nautilus, not issue any more sea bed mining exploration or mining licences, and invest in truly sustainable local enterprises that will benefit local economies.

According to reports, Nautilus is now approaching liquidation, and Marape has described Solwara 1 as "a total failure”. PNG's investment in Nautilus has resulted in losses equivalent to one-third of its last national health budget. The PNG government through Eda Kopa (Solwara) Limited is attempting to recoup some of its financial loss through the Canadian courts. Smaller shareholders considering a class action are hoping to collaborate with Eda Kopa.

A new international report ‘Why the Rush? Seabed Mining in the Pacific Ocean’, released in July 2019, describes how Nautilus’ early investors pushed the PNG government into buying a 15% share in its Solwara 1 project.  These investors increased the company's share price with false promises of vast wealth and then walked away as multimillionaires, leaving the company to flounder.

Sir Arnold Amet has stated that the approval of Solwara 1 occurred under his watch as an MP and governor for Madang. “I regret that the O’Neill government didn't adequately scrutinise that project and took up 15% equity in Nautilus PNG. It's time to rectify that situation,” he has said.
 
“Lets recognise this failed investment in the upcoming budget and ensure we don't enter into seabed mining joint ventures in the future or issue any more seabed exploration or mining licences. We now know how deep-sea mining companies attempt to manipulate governments according to their own narrow profit motives without any conscience. We look to PM Marape to stand up for Papua New Guineans against the pressure exerted by these corporations.”

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Nautilus Minerals, tel +1 416 551 1100 or email investor@nautilusminerals.com.