China's Fujian Mawei Shipbuilding has cancelled a newbuilding contract for a mining ship ordered by Dubai's Marine Assets Corporation (MAC).
The vessel's charterer, Canada-listed Nautilus Minerals, said it had been told by the yard that MAC had failed to pay the third instalment of $18m plus interest.
MAC was notified of the default in December.
Nautilus, which has agred to pay a charter fee of $199,901 per day over five years, said: "Notwithstanding the rescission of the shipbuilding contract by the shipyard, discussions are continuing and the company will issue further updates as matters develop."
