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NAUTILUS TERMINATE SEA MINING

Staff Reporter | 12:26 AM | |

Canadian company, Nautilus Minerals, will still maintain its term of operations with the National Government despite terminating the state's Equity Option Agreement for a deep sea mining venture.

The termination will now mean that Nautilus Mineral will claim damages made against it.

CEO Michael Johnson said they are still on amicable terms with the government and will proceed with the mining deal when they find a new partner to help fund the project.

However, Nautilus said PNG's failure to provide its 30 percent equity share means they forfeit all rights to equipment and intellectual property.

Mr Johnson said PNG' failure to pay for that share, as it was ordered to in a 2012 International Arbitration ruling. is the reason the agreement has ended.

"What we've done just terminated the State Equity Option Agreement which the two companies signed back in May, 2011. So we still going ahead in Papua New Guinea, we still have our licences there and permit. Basically, we reached the point where the company couldn't continue to carry the State, fund the state share of the development, you know and responses to the state not under taking completion as required under the State Equity Option Agreement and as required by Arbitrate we are served termination notice to the state last week".

ABC News