Neptune Minerals (AIM: NPM) has issued Expression of Interest (EoI) and prequalification documents to leading international dredging and subsea engineering companies. The EoI is to undertake a Build, Own, Operate (“BOO”) contract mining system for the commercial development of seafloor massive sulphide (“SMS”) deposits offshore New Zealand. The prequalification process will conclude with proposal submissions in July 2008. Negotiations with a selected short list will follow, leading to the award of a BOO mining contract.
Neptune is planning on embarking on a long-term advanced exploration program in New Zealand waters (Project Trident) the aim of which is to define multiple SMS deposits over which Mining Licence applications will be made. These deposits will comprise the SMS tonnage that will be exploited by the BOO contract mining system.
Neptune’s Chief Executive Officer Dr Simon McDonald said:
“The BOO contract mining concept represents a key opportunity for Neptune to unlock the value of its New Zealand SMS deposits without incurring major capital expenditure on its balance sheet. Implementation of the BOO contract will see the critical areas of engineering design, construction and mining operations undertaken by marine industry specialists. Neptune will continue to focus on defining and expanding its inventory of SMS deposits whilst working with the selected contract miner to deliver SMS production.”
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