Nautilus: We’re committed

 By MALUM NALU

NAUTILUS Minerals yesterday asserted that it remains committed to Papua New Guinea and the Solwara 1 project – a high-grade copper-gold projection located in the Bismark Sea between East New Britain and New Ireland.

The company’s president and chief executive officer Mike Johnston told The National yesterday after a media briefing that he remained confident in the future of the project despite an arbitration case with the PNG government, understood to be over Petromin’s refusal to take up the State’s 30% equity.

Country manager Mel Togolo said there was good political support for the project to continue.

“The project is continuing to move forward,” Johnston said.

“I’m very confident in the project. I think it will be a crying shame if it doesn’t go ahead.

“It’s such a good project and it brings into Papua New Guinea a whole raft of other opportunities.”

Johnston said although the company has had to slow down operations since the end of last year, its three main contractors were working on vital equipment, which would be essential for the project.

“Obviously, we’ve had to slow things down a little, an arbitration thing that the government has brought against the company but support for the project is still high.

“In New Ireland province, we’re had good meetings last week with politicians. Papua New Guinea will have 30% interest in the project and any future royalties..”

Togolo, when asked about the company’s government relations, said: “We’ve always had a very good relationship. When we were granted the exploration licence, the government has always supported us. That support is reflected in the fact that, after looking at our studies and our work, we’ve been granted the environmental licence, which is a hurdle for many companies in the mining industry.

“We continue to work with the relevant agencies, and we have senior ministers supporting the project.”

Asked about the current stalemate, Togolo said: “I think you are referring to the arbitration case.

“The holdup is not so much with our permit or licence, but an issue that we are discussing with the government on commercial matters.

“One of the things that we did to preserve our cash was to lay off most of our workers in Brisbane.

“We are now in discussions with the State to make sure that the State equity is also in this project.”