Ramu NiCo plant 90% done

RAMU NiCo’s nickel and cobalt refinery at Basamuk, in Madang’s Astrolabe Bay, is 90% complete, says Ramu NiCo’s vice-president Yang Yong.

Yong told The National at his Basamuk office last Tuesday that all the work should be completed before the project is commissioned in October.

Speaking to the PNG media for the time, he said that the refinery, which included the deep sea tailings placement (DSTP) system, comprised 80% of the company’s US$1.37 billion investment in the project.

Yong said the refinery is made up of 1,400 separate machines - 724 of them in the main system and another 676 in the support system.

He said all systems had been tested and await the National Court decision on the future of the DSTP.

A group of landowners in the Basamuk area have taken Ramu NiCo to court, claiming that the DSTP was environmentally damaging.

Yong said the construction of the DSTP would take at least 50 days and was the last instalment in the construction phase of the project which had taken the Chinese developer two years to put in place.

The project comprises three components - the mine at Kurumbukari plateau in Usino-Bundi, the 135 slurry pipeline through inland and coastal regions of Rai Coast and the refinery plant, also in Rai Coast electorate.

Apart from the majority Chinese interest, other stakeholders in the project are Highlands Pacific Ltd, the government and landowners in the four impacted areas.

Ramu NiCo pursuing nickel project despite lawsuit

DESPITE a court injunction against the proposed deep-sea tailing system for the Ramu nickel project, project owner Ramu NiCo has decided to pursue other construction activities at the mining and refining sites.
The full-swing construction activities at the two sites are being bank-rolled by Chinese funds, which already spent more than US$1.2 billion (K3.3 billion).
Ramu Nico president Madam Luo Shu told reporters yesterday the National Court Injunction obtained by the Basamuk Bay landowners has not stalled activities at the mine site, save for the deep-sea tailing system.
With the mine being potentially the biggest project after the Bougainville copper mine or the Ok Tedi Mine, “Ramu NiCo will not let down its stakeholders, especially the National Government, project partners and the community at large”, she said.
“It’s a commitment we have with our stakeholders and the people of Papua New Guinea,” Luo said.
Highlands Pacific’s managing director John Gooding said: “Ramu nickel project is a significant project as it would be the first time for PNG to export nickel and cobalt once it begins production.”
It had the potential to have a greater impact on the country’s economy, he said.
Gooding also said Papua New Guineans could own up to 35% of the company by buying stakes through respective holdings companies.
Luo said up to the end of last year, the aggregated local procurement value involving supplies and provisions was in excess of K200 million, while spin-off businesses worth K80 million had been contracted to landowner companies.
Furthermore, more than K 5.1 million was paid to landowners as environmental and land compensation.

Gao hopeful about K40m for Ramu

MEMBER for Rai Coast Sane Gao said the people of Ramu will benefit from the K40 million “seed capital” the government would provide for them.
He rejected suggestions that the money was compensation offered to the landowners to withdraw a case now before the court which halted work at the Ramu nickel and cobalt mine.
Since the National Court issued an injunction stopping work at the mine, the operators have become very concerned about financial losses they were suffering.
It is estimated they are losing K10 million a day.
The government wants to start the mine by the end of the year or early next year.
Its revenue is crucial to PNG’s economy, to fill the revenue hole that will be created by the closure of Ok Tedi.
Exports from the mine will also address balance of payment concerns created by the PNG LNG project.
Gao said the K40 million was business grants from the government agreed to in a memorandum of agreement.
He said the funds were for the Ramu nickel foundation and landowners from KBK, inland pipeline, coastal pipeline and the Basamuk area.
He said he was working hard to resolve this conflict “the Madang way” and he described this as a win-win situation.
He engaged Ricky Kumung to facilitate and mediate the dialogue between the state, the developer and the people led by Simon Melembo.
Gao said any further delay in the project would have adverse effect on the nation as the state was the signatory to the original mining agreement.
He said he also saw the need to have the mine continue as the tax credit scheme would help the infrastructure in Rai Coast and Usino-Bundi electorates.
He said the issue of environment was not isolated but was captured in the instrument to be signed tomorrow.
Prime Minister Sir Michael Somare also said during the presentation of the K36 million IPBC dividend payout
to the state (see story separate story) said the money was not for compensation but was a seed capital for the people.
Meanwhile, Member for Usino-Bundi Samson Kuli applauded the people for the lead in pursuing the government to address their needs as they almost missed out.
He said such money should assist the people to venture into business and not to be mere spectators as the two electorates were the least developed in PNG.