Firm predicts strong growth for Ramu nickel project

 Highlands Pacific Ltd says production at the Ramu nickel project is expected to grow strongly this year.

The exploration firm said production was expected to exceed 29,000 tonnes of nickel, with the plant expected to achieve a full nameplate production rate on a consistent basis by the end of the year. This also comes after the company produced more than 25,500 tonnes of nickel concentrate at the end of last year, slightly exceeding its above guidance of 24,000 to 25,000 tonnes provided in its September quarter report.

Highlands Pacific said production for the last December quarter was also well above guidance – at 6320 tonnes. 

But it was below the previous quarter because of a planned shutdown for maintenance in November.

It said the shutdown affected different parts of the plant over a period, forcing the inspection of autoclaves, addition of iron filtration to boost recoveries and routine servicing and cleaning.

The firm notes that the depressed nickel prices had an impact on Ramu’s operation with the project having an unaudited net cash outflow of US$5.2 million (K16m) for the December quarter, including capital expenditure of US$5.9m (K18m).

Ramu’s full year performance resulted in a net cash flow of an unaudited US$16.4m (K50m) after capital expenditure of US$15m (K45m).