ELIZABETH WALTERS | Stockhouse

NAUTILUS MINERALS IS CONTINUING to work with Papua New Guinea in an effort to resolve the monetary dispute over the 30% stake the PNG government holds in the proposed Solwara 1 underwater mine.

Nautilus is the first company to explore the ocean floor for prospective minerals and is developing its first project at Solwara 1, where it is aiming to produce copper, gold and silver.

Nautilus and PNG have agreed on the appointment of former Chief Justice of the High Court of Australia, Murray Gleeson, as the arbitrator.

The arbitration will be conducted in Sydney under established arbitration rules and may take several months to conclude, provided that Nautilus and PNG comply with the timetable set by the arbitrator and act in accordance with the rules.

Last Friday PNG issued the company with a second notice of arbitration in relation to disputes concerning certain statements made by the parties and whether such statements were made in accordance with the agreement.

According to Nautilus, PNG has yet to pay for its 30% stake in the project.