K5bil Ramu NiCo deal made

Business

CHINESE President Xi Jinping witnessed the signing of an agreement between China Minmetals and Mining Minister Johnson Tuke for the expansion of the Ramu NiCo project.
The agreement was signed in Port Moresby on Friday and allows China Minmetals MCC to invest US$1.5 billion (K5bil) to expand the mine.
The company said in a statement that the expansion would increase the mine’s production capacity and reduce operational cost.
“The project expansion will during the construction phase provide casual employment for over 3000 local workers,” it said.
“It is anticipated that over 1000 permanent jobs will be created for locals in the area.
“The expansion is expected to support cash flow within the project area and create local business spinoffs for the locals,” the statement said.
“It is expected to improve living conditions for people who relate to the Ramu project via direct and indirect benefits.”
The company said the Ramu NiCo project expansion also marked another new era in mutual relations and cooperation between China and PNG.
“It is another new milestone for the Ramu project since the company commenced commercial production in 2013 and achieving its name-plate production capacity in 2016,” it said.
“Moreover, the signing compliments China’s One Belt, One Road Initiative which President Xi Jinping had set the pace to.
“It ultimately sets the pace on broadening the relationship between the two countries to becoming more interactive.
“Ramu NiCo project, being the largest Chinese investment in the Pacific region, is obligated to enhance the relationship between China and PNG.”