The turmoil in the world markets has prompted Nautilus Minerals (NUS-T) to delay the construction of equipment for its Solwara 1 mining system for its seafloor massive sulphide deposit of copper, gold, zinc and silver.
Instead the company will hold on to its cash – it had US266.6 million as at Sept. 30 – until the markets stabilize.
“The continued uncertainty in the financial markets now forces us to take a more cautious approach,” said Nautilus CEO, Stephen Rogers, during a conference call. “The project requires further funding to take this project comfortably to its start up and commissioning cycle.”
The company had planned to bring the underwater mining operation into production by the fourth quarter of 2010.
Rogers says he doesn’t know when the company will start production.
Nautilus wants to build the world’s first seafloor copper-gold mine in the Bismarck Sea in Papua New Guinea, 50 km north of Rabaul township.
The company holds 521,000 sq. km of exploration ground in the territorial waters of PNG, Fiji, Tonga, the Solomon Islands and New Zealand along the western Pacific Ocean’s Rim of Fire.
The project requires more funding but management have agreed that it wouldn’t be able to get a very good deal because of the volatility in the markets.
Rogers says the company will continue with its mining licence application, engineering designs and exploration.
“I want to emphasize that the project is not being stopped or halted,” Rogers said.
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