Nautilus Minerals has awarded a US$116 million contract to Technip USA to provide the Riser and Lifting System (RALS) components for its Solwara 1 gold and copper project in the territorial waters of Papua New Guinea.

Technip will provide engineering procurement and construction management (EPCM) services for the RALS components of the deepwater seafloor massive sulphide extraction system. This will comprise subsea pumps, riser pipe, riser handling system and associated deck equipment.

Nautilus' CEO David Heydon says: "With the award in December 2007 of the GBP33 million Seafloor Mining Tool (SMT) contract to Soil Machine Dynamics together with the US$116 million for the RALS, Nautilus' total capital commitment to date on the mining system is approximately US$186 million.

”A competitive front end engineering design program is underway to evaluate the SMT and the RALS integration requirements for the various mining production vessels under consideration. This will allow competing mining services contractors to finalize their outstanding tender clarifications.

“Nautilus proposes to select the vessel and mining services contractor during this quarter and with this timetable remains on track for production at Solwara 1 in quarter 3 2010, subject to timely permitting.”

The RALS contract resulted from a competitive tendering process involving five specialist riser contractors from the oil and gas industry. The contract was awarded to Technip as it provided Nautilus with the best technical solution and the most cost effective approach to the delivery of the equipment.
Technip, with a workforce of 22,000 people worldwide, is an integrated engineering, technology and construction services provider to the worldwide oil/gas and petrochemical industry and one of the world's leaders in deepwater riser technology.

David Heydon says: “The Solwara 1 ore is simple, clean and amenable to production of a saleable concentrate. Accordingly, Nautilus is reviewing options for offtake sales and the direct shipping of Solwara 1 ore and has started discussions with various parties in this regard.

“This approach would postpone any major capital commitment by Nautilus for a concentrator until after first ore shipments when the company is generating cashflow.”

www.nautilusminerals.com