The Government of Papua New Guinea is to acquire a 30% stake in the Nautilus Minerals Solwara 1 project in the Bismarck Sea in Papua New Guinea (PNG).

PNG treasurer Peter Neill said that the Ministerial Committee on Economic Sectors and the National Executive Council (NEC) had supported a recommendation that the state exercise its rights to 30% equity in the proposed mining joint venture.

Under the transaction, the government will fund the project in proportion to its interest, including its share of the exploration and development costs.

Nautilus CEO Stephen Rogers said the successful development of Solwara 1 would pave the way for the expansion of operations to other seafloor deposits in the future and create an exciting growth industry further benefiting PNG.

The firm will release the financial details regarding the transaction in the coming months.