Fujian Mawei Shipbuilding has canceled the construction contract for the Nautilus Minerals’ Production Support Vessel (PSV), a part of the Nautilus’ Solwara 1 project located offshore Papua New Guinea.
"We have been notified by Fujian Mawei Shipbuilding, the owner of the shipyard where Nautilus’ PSV is being built, that the Shipyard has rescinded the shipbuilding contract between the Shipyard and MAC Goliath, the contractor engaged by Nautilus to procure the construction of the PSV on behalf of Nautilus," said a press release from the company.
MAC was hired by Nautilus to procure the construction of the PSV on behalf of the company, it explained.
"The Shipyard’s notice of rescission is in response to MAC’s failure to pay the third installment of the contract price (USD 18mln + interest). In its press release of December 11, 2017, the Company reported that the Shipyard had notified the Company of MAC’s default. Notwithstanding the rescission of the shipbuilding contract by the Shipyard, discussions are continuing and the Company will issue further updates as matters develop," the release said.
The Toronto-based Nautilus Minerals, one of the world's first seafloor miners, is in the last stages of developing its Solwara 1 gold, copper and silver project, off the coast of Papua Guinea.