Drop in nickel price worries firm

 Ramu NiCo Management Ltd, the operator of the Ramu nicker mining in the Madang, says it is gravely concerned about the continuous drop in nickel price in the world market.

However the management assured all employees that no staff would be laid off as part of the cost-saving measures but other cost-saving measures would be considered.

“The drop on world nickel price comes at the time when Ramu NiCo is at the ramp-up period since official production in December 2012 and in the process of overcoming numerous technical challenges and other challenges to reach 100 per cent design capacity soon,” the company said in a statement.

“Although the project has reached over 90 per cent designed capacity recently with major improvements in technical areas, the project management is concerned the continuous drop in the nickel price will have serious impact on company cash flow.”