Key points
- Nautilus and the state agreed on Murray Gleeson, AC, QC, former chief justice of Australia’s High Court, as arbitrator.
- The arbitration will be held in Sydney under UNCITRAL rules and may take several months to conclude.
- On July 13, 2012, the state issued a second notice of arbitration concerning statements made under the March 29, 2011 agreement.
- Any resolution outside arbitration must be ratified by the state’s National Executive Council, which cannot meet for a few months due to ongoing state elections.
NAUTILUS AIMS TO RESOLVE DISPUTE
Nautilus Minerals Inc., in addition to preparing its response to the notice of arbitration received from Papua New Guinea, is attempting to work with the state in an effort to resolve matters amicably.
Nautilus and the state have agreed on the appointment of former chief justice of the High Court of Australia, Murray Gleeson, AC, QC, as the arbitrator. The arbitration will be conducted in Sydney, Australia, under UNCITRAL arbitration rules, and may take several months to conclude, provided that Nautilus and the state comply with the timetable set by the arbitrator and otherwise act in accordance with the rules. The state, on July 13, 2012, also 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 dated March 29, 2011. The company will respond to the second notice in accordance with the arbitration rules.
A resolution of this matter outside of the arbitration process will have to be ratified by the state’s National Executive Counsel, pursuant to a recommendation by the state’s nominated team. State elections are currently under way and it could be a few months before a new NEC is formed and is able to meet.
Nautilus confirms its preference is to resolve matters without going through an arbitration process and it is taking steps to meet with the state’s representatives with the aim of achieving this outcome.
The company will provide a further update as the matter progresses.
