By JASON SOM KAUT
THE Independent Public Business Corporation (IPBC) will be undertaking construction of a K1.1 billion hydro power station to meet the growing power demand in PNG.
To be called Ramu Two, the new 240-megawatt power station is being built specifically to meet the power requirements of the multi-billion kina Ramu Nickel Mine in Madang province.
The Ramu mine will require about 70 megawatts with excess power expected to support power demands from Harmony Gold (PNG) Limited with remainder to be shared by the Morobe and Highlands grid.
IPBC general manager Robert Nilkare yesterday revealed this to media in Lae during a formal briefing on the K350 million Lae Tidal Basin project.
The IPBC, as trustee and shareholder of all State owned enterprises (SOE), will act as the executing agent for the project.
“The start of the project will depend on Ramu Nickel signing the purchase agreement,” Mr Nilkare said.
He said Ramu Nickel is the ‘anchor client’ as their signing up will support the construction of the mine. And any new customers will be a bonus,” he said.
The Yandera Mine in Madang will also benefit from the new power station.
Meanwhile, PNG Power Ltd has signed a number of key contracts to supply electricity to the new family of resource developments in PNG.
These include the building of a new 18-Mw hydro power station at the toe of the Yonki Dam to supply initial demand of the Hidden Valley Gold Mine in Morobe province. This was made possible following the signing of an agreement with the mine’s parent company, Harmony International of South Africa last May 14.
The power station is expected to be completed and begin supplying electricity to the mine site by January next year, when Harmony expects to start production.