Ramu nickel cobalt mine in production

By BOSORINA ROBBY
AFTER a number of setbacks, Ramu nickel cobalt mine in Madang, has been commissioned and is now in production and nearing first sales in coming months, according to partner, Highlands Pacific.
The company, in its 2011 annual report, said this was after 15 years of studies, various approvals, three years of construction and two years of legal delay on the US$1.5 billion (K3.1 billion) project.
This will mark first cash flow for the project, an opportunity to showcase this asset, and allow for the training and employment of a new generation of Papua New Guinea mining, operational, processing, commercial and technical specialists.
The broader social contribution of one of the largest projects in PNG can now begin.
“Ramu is at an important early stage of its long life,” the report said.
“It would be prudent to suggest that like most mines it may have its share of teething problems.
“If it does we hope shareholders and the community of PNG will provide it with an opportunity to realise its full potential over more than its 20-year life time that it has just in reserves at present.”
The past year also saw the continued emergence of a potential new copper province for Highlands Pacific with the early exploration success at the company’s Star Mountains project in Western province.
Exploration activity as measured by holes in the ground was less than the company would have liked due to the logistic challenges of the remote location.
The Frieda River copper-gold project in East Sepik also reached a critical stage with a resource upgrade last September, followed by a decision in November 2011 by the joint venture partners to extend, by 11 months, the deadline for a feasibility study on this world scale asset.
The company have outlined  their project objectives for the next 12 months:
l Ramu: Safe and steady commissioning and production ramp-up with the sale of concentrates and the emergence of project cash flow;
l Frieda: Investigation of natural gas powered generation alternatives as a potentially faster and cheaper option to the A$1 billion hydroelectric scheme, and the subsequent impacts on infrastructure and the project as a whole. Completion of the bankable feasibility study by December; and
l Star Mountains: the drilling of a number of deep (+500m) holes at each of the remaining nine targets in the Tifalmin intrusive region to ensure that target priorities are confirmed.