Publication Navigation

Site Navigation

Nautilus Solwara 1 project delayed

Publishing Date
18 Dec 2008 11:53am GMT
Author
Mining Magazine

Exploration  


Nautilus Minerals Inc. has issued a statement saying that the company has decided to adopt a more cautious strategy to preserve its strong cash position by delaying the construction of equipment for the Solwara 1 mining system. The company says that this decision has been directly fuelled by the speed and severity of the global economic downturn and the uncertainty in the financial and commodity markets. Nautilus will continue to move forward with permitting for its Solwara 1 Project but at a reduced pace.

 

In November 2008 Mining Magazine reported the agreement of three new equipment contract awards for the Solwara 1 project located in the Bismark Sea. Nautilus now states that in order to preserve capital, the company plans to suspend or cut contracts and purchase orders with equipment suppliers depending on their importance to the revised development program. In particular, the order of a mining support vessel from North Sea Shipping Holding AS, announced on June 20, 2008 is currently in the process of being terminated.

 

As a result of this decision, Nautilus plans to reduce its workforce by approximately 30% to a level that will allow it to preserve cash while continuing to seek approval for its Solwara 1 Mining Licence application, and for its environmental permit. The company will also continue engineering work on the Solwara 1 mining system to enable a prompt restart when conditions allow. As a consequence, the previously announced timetable for first ore production at the Solwara is expected to be delayed beyond December 2010.

 

Nautilus' CEO, Stephen Rogers, commented: "Given market conditions, the Board of Directors and management have undertaken a thorough review of all operations. Deferring the equipment build for the Solwara mining system is a difficult yet appropriate decision. It also provides an opportunity to realise cost savings and possible benefits presented by the current market downturn. These may include reduced material and equipment costs, faster manufacturing times and lower logistics costs given a less heated market. The company remains committed to its objective of developing the world's first seafloor massive sulphide recovery operation.”
 

More News By Subject

Site Search

Read articles from the latest Print Edition - MM Nov 2014
MM1411scr-2.jpg
 
PROFESSIONAL PLACEMENTS

Professional PlacementsProfessional Placements: Executive Director - PDAC

The Prospectors & Developers Association of Canada (PDAC) is seeking an Executive Director (ED) to oversee its operations from its headquarters in Toronto, Ontario

COMPANY PROFILES
Russian precious metals company Polymetal International plc’s commitment to establishing an extensive pipeline of growth projects has continued with the acquisition of the Kyzyl gold project.
Russian precious-metals company Polymetal International plc has made significant progress at the Semcha platinum-group metals (PGM) property in the past year as it moves the project towards a preliminary economic assessment
The Republic of Guinea intends to launch, pursuant to the mining Code, a competitive and transparent invitation to tender for three bauxite mining blocks located in the prefectures of Boffa, Boké and Télimélé.
Indochine Mining Limited is developing a high-grade gold project at Mt Kare in PNG by rapidly developing wide, high-grade gold zones
Sarama Resources is a West Africa-focused gold explorer with substantial landholdings in Burkina Faso, Liberia and Mali.
RECENT IN-DEPTH FEATURES

Recently published Reports:

No results were found