Nautilus Minerals (TSX:NUS) says it is a step closer to becoming the world's first deepwater mining exploration and production company after contracting with a Norwegian shipowner for a support vessel.
The binding agreement with North Sea Shipping Holding AS to provide the ship for the Solwara 1 project off Papua New Guinea is valued at US$125 million over five years.
Nautilus, which explores the ocean floor for gold and copper, is aiming for production by late 2010. Its main focus is the Solwara site in the territorial waters of Papua New Guinea in the western Pacific. Raymond Goldie, an analyst at Salman Partners Inc., said some are skeptical of the company's plans, but large mining firms such as Anglo American PLC, Teck Cominco and Russian firm Epion have signed on as stockholders.
Epion has a 22 per cent stake, while Teck (TSX:TCK.B) recently increased its interest to seven per cent and Anglo holds about six per cent.
Goldie said his concern about the project isn't that the technology won't work, but that the different types of technology may not work together, especially deep in the sea. "My concern is not using novel technology, but ones that haven't been run together before," said Goldie.
That last highlighted quote is the only thing keeping me from really jumping on this novel investment theme..but in the long run this concept looks promising, especially given the world's limited natural resources (on land that is :-)
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