Solwara One loan transferred

The National Business

A Solwara One Kumul Mineral Holdings Ltd group loan of US$120 million (K375mil) will be transferred to the State, says Bank South Pacific (BSP) chief executive officer Ian Fleming.
It was initially in Eda Kopa Limited, which is part of the Kumul Minerals Limited group.
Fleming said as part of the restructure of the Kumul Minerals Limited group, the loan in the name of Eda Kopa Limited and which is guaranteed by the Government would be restructured and transferred to the State as a direct credit obligation.
“The respective NEC and other approvals have been received and the process of transfer will take place soon,” Fleming told The National.
“The transaction has not been completed but it is really a transfer of liability from a company (Eda Kopa Ltd) to the State rather than formal payment of funds.”
Treasurer Ian Ling-Stuckey said in a statement this week that the Government had renegotiated for more satisfactory terms on the loan which the previous government took from BSP to buy a 15 per cent stake in the Solwara One project.
The project was to mine the sea floor to produce copper, gold and silver – dubbed at that time to be the first deep – sea mining project in the world. Ling-Stuckey said interest on the original loan from BSP was 7.75 per cent annually – around K2.4 million a month until next April when the principal and interest were to be repaid.
An additional agency fee of K350,000 a year was to be paid in quarterly instalments.

2 comments

  • Yeh man go for it !!!
    2010/04/08 Sir Puka Temu said “The Solwara 1 project was unique project and a new concept and the commencement of the project would prove significant for the country and the global community as it signified the start of a new industry and a move away from the traditional land based mining to deep sea bed mining.
    He said it was a new frontier and PNG was proud to be at the forefront of this historical development.
    He said the Government’s “take” from the project would help to boost the nation’s foreign exchange and revenues given that Misima Mine was now closed and Ok Tedi Mine will close by 2013.”
    Source Post Courier

  • A very sad state of affairs. The group who proposed this unrealistic project have gone quiet & the state must now clean up as the guarantor.

    A clear indication of lack of professional advice to the government.

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