THE PNG GOVERNMENT is said to have “created history” by granting the world’s first deep sea mining lease to Nautilus Minerals of Canada for the development of the Solwara 1 Project in the Bismarck Sea.

“This historic decision to grant a lease over a deep sea deposit is a major step forward for this new frontier,” said Nautilus CEO Stephen Rogers.

“It reflects the fact that the Solwara 1 Project is being recognised as an exciting, commercially valuable undertaking.”

The lease covers an area of about 60 sq km 59km and is 50km north of Rabaul. Nautilus intends to mine 2.2 million tonnes of high grade copper and gold deposits on the sea floor at depths of about 1,600 metres.

The mining lease has been granted for an initial 20 years and the PNG government retains an option, exercisable within one month, to take up to a 30 percent stake.

“We are grateful to the PNG government for its support and welcome its participation in the project,” Mr Rogers said. “We look forward to working closely with the government on Solwara 1, which will generate significant investment for the economies of New Ireland, East New Britain and PNG.

“The successful development of Solwara 1 will pave the way for the expansion of operations to other seafloor deposits in the future, creating an exciting growth industry further benefiting PNG,” he said.

Source: ‘Deep sea mining lease granted’ by Mohammad Bashir, Post-Courier, 19 January 2011