Ramu nickel mine contributing consistently to PNG: Official

THE Ramu NiCo Management (MCC) Ltd spends up to K1.2 million annually on the training locals in Madang, an official says.
Community affairs deputy general manager Albert Tobe revealed this while explaining how it impacted locals during an induction programme for MPs in Port Moresby on Thursday.
MCC is the operator of the US$1.2 billion (about K4.2 billion) nickel and cobalt mine in Madang.
While nickel and cobalt were discovered in 1962, it took almost 50 years for the mine to be established and production to start.
Tobe said it took a long time for a developer to show interest as the nickel and cobalt concentrate were of low grade.
“Economically, many viewed it (project) as not viable to operate,” he said.
In 2004, Prime Minister Sir Michael Somare approached the Chinese government and China Metallurgical Group Corporation (MCC Group) in Beijing to develop the project.
Tobe said because it was considered risky to develop, the Government at that time offered the developer some incentives.
Tobe also noted that the project memorandum of agreement lapsed in 2018 and a review was necessary.
The project comprises a laterite open-pit mining, 135km slurry pipeline, high pressure acid leaching, deep sea tailings placement (DSTP) as well as a number of supporting facilities.
It produces nickel/cobalt intermediate product, in which the aggregate nickel metal accounts for 31,000 tons per year and cobalt for 3,000 tons per year.
The project is an unincorporated joint venture between MCC Ramu (85 per cent); Mineral Resources Madang Ltd (2.5 per cent) and Mineral Resources Ramu Ltd (3.94 per cent) two subsidiaries of Mineral Resource Development Corporation on behalf of PNG government and landowner interests, and Ramu Nickel Ltd owns 8.56 per cent, a subsidiary of Highland Pacific Ltd.
Ramu NiCo Management (MCC) Limited, as the manager/operator of the project appointed by all JV parties, was fully responsible for construction, development and operation of the project.