Tailings issue could damage Ramu project: Highlands Pacific

THE Ramu nickel and cobalt project in Madang province could be mothballed if common-sense does not prevail over its deep sea tailings disposal system.
This is because the project is months away from full production after construction ended last year.
The warning came from development partner Highlands Pacific Ltd (HPL) following a National Court decision in Madang last month that halted the project over environmental concerns.
This was after several individuals claimed customary ownership of land in and around the Basamuk Bay, the site of the proposed tailings facility.
HPL managing director John Gooding warned last Friday that any other tailings options would probably “break” the project.
HPL’s current 8.56% interest in the Ramu will increase to 11.3% at no cost after repayment of the project debt (estimated to be eight years).
Highlands also has an option to acquire an additional 9.25% at fair market value which could increase its interest to 20.55%.
Mr Gooding told Miningnews.net that development of the pipeline was not at the critical stage yet, but was costing the project manager time and money.
“To be honest, any other tailings options would probably break the project, but we are confident common sense will prevail,” Gooding said.