The first ocean floor mining project, pioneered by Canadian mine developer, Nautilus Minerals seems doomed to fail. The Solwara 1 project was a joint venture between Nautilus and the Papua New Guinea government, but work has come to a standstill amid contract disputes.
Nautilus is only one of the large mining interests experiencing difficulties in the impoverished Asian nation, which declared it’s independence from Australia in the mid-1970s. Plagued by violence and corruption, general elections sparked escalating turmoil, forcing enormous mines held by Rio Tinto and BHP Billiton to close.
Although Nautilus is rumored to have at least $100 million in cash reserves, speculation implies that Petromin PNG Holdings, the local company working with Nautilus, may not be able to supply adequate funding for their 30% stake in the undersea mine. A surface vessel to function as headquarters for the operation could also be facing funding problems from Nautilus’ German building partner. The remainder of the project is nearly 50% complete.
http://mining.com/2012/06/28/nautilus-sinks-to-fresh-lows-as-png-elections-descend-into-shambles/
