15pc holding in place for KMHL

KUMUL Minerals Holdings Ltd (KMHL) still has the 15 per cent holding in the Solwara One deep sea mining project, as development talk continues, says managing director Sarimu Kanu.
“KMHL position is to dispose of the 15 per cent holding in Solwara One, however, as KMHL still holds the 15 per cent, we will not be contributing to any cash call,” he said.
“The new players in the project can keep progressing the project without added cost to KMHL.
“But they will not be able to dilute the 15 per cent.”
Kanu said the Treasury Department had taken over the repayment of a US$120 million (about K426 million) loan by Petromin to buy the equity share in the stalled Nautilus project.
“Treasury is currently doing that now, he said.
“There are new players in Solwara One and are driving a different method of ore extraction to the previous Nautilus strategy.
“They still need to proceed to trial mining stages.
“The KMHL has established a stringent investment policy and criteria that will drive our investment strategy and the determination of what project KMHL will participate.
“We are therefore confident that the mistakes made previously through Petromin are not repeated.”
Mining Minister Sir Ano Pala earlier said the Government expected to pursue discussions with a deep sea mining company to revisit the potential for extracting minerals in the Bismark Sea off the west coast of Namatanai, New Ireland.
Deep Sea Mining Finance Ltd (DSMF) is the company that acquired Nautilus Minerals, which had previously pursued interest in deep sea mining in the mid-2000s through the project known as Solwara One.
New Ireland Governor Sir Julius Chan and the provincial government also met with the DSFM executives in March about the project.