Bank of South Pacific and Petromin PNG Limited, today closed the financing of the state’s US$120 million investment for the development of the Solwara 1 project.
This is equivalent to over K300 million.
Petromin has 15 percent equity in the Joint Venture with Nautilus Minerals, and will use this fund to mine the sea floor of the Bismarck Sea, to produce copper, gold and silver.
The Solwara 1 project in the Bismarck Sea is the first deep sea mining project in the world.
The signing between BSP and Petromin marked the closing of the financing of the state’s 120 million US dollars, which is approximately K307 million investment for Petromin’s 15 percent equity in the Joint Venture with developer, Nautilus Minerals.
On November 13, 2012, Nautilus announced that the Management, and the Board of Directors of Nautilus decided to terminate construction of its Seafloor Production System, in order to preserve cash.
This was a result of a dispute with the State over costs that Nautilus said; the government is obliged to meet for the project. This fund will now assist the development of the project. The project is forecasted to extract high grade Seafloor Massive Sulphide systems on a commercial scale.
Developer, Nautilus has been working over the past number of years on the building of the Seafloor Production System, amidst environmental concerns raised by intellectuals and local leaders in the New Guinea Islands region, and NGOs.
For BSP, it’s a landmark transaction. Its Group Chief Executive Officer, Robin Fleming, proudly said the bank will continue to provide solutions to the mining, oil and gas sectors.
This historic achievement places as the local market leader to delivering complex financial solutions for the development of major resource and infrastructure projects.
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