The Conversation (0)
The Globe and Mail reported that a conflict between Nautilus Minerals Inc. (TSX:NUS,LSE:NUS) and the government of Papua New Guinea (PNG) could thwart Nautilus’ plans to mine the sea floor for gold, copper and other minerals. It could also contribute to PNG’s image as an insecure investment location.
The Globe and Mail reported that a conflict between Nautilus Minerals Inc. (TSX:NUS,LSE:NUS) and the government of Papua New Guinea (PNG) could thwart Nautilus’ plans to mine the sea floor for gold, copper and other minerals. It could also contribute to PNG’s image as an insecure investment location.
As quoted in the market news:
Hungry for foreign investment, Papua New Guinea, a nation of seven million spread over an equatorial archipelago the size of California, had agreed in 2011 to pay 30 per cent of the costs to build the Solwara 1 project in the Bismark Sea, which Nautilus said amounts to $80-million (U.S.) so far.
But in June, the government’s investment arm, Petromin, said it was terminating the agreement. Without the funds, Nautilus says it cannot afford to proceed and the matter is now in arbitration in Australia under The United Nations Commission on International Trade Law.
Concerned it will run out of cash, Nautilus has suspended a three-year contract to supply 1.1 million tonnes of unrefined copper ore to Chinese smelting company Tongling Nonferrous Metals Group Co. Ltd.
The dispute comes at an unfortunate time for Prime Minister Peter O’Neill, who is seeking to present his country as a secure place for foreign investment.
