Highlands Pacific Limited has confirmed that a potential expansion of PNG’s Ramu Nickel and Cobalt Project is being investigated.
In a statement early this month, Highlands Pacific said the manager and majority partner in the Ramu joint venture, Metallurgical Corporation of China Limited (MCC), is investigating the expansion of the project which may cost in the order of US$1.5 billion.
The company said details of any proposed expansion will be announced when they are finalised.
Highlands Pacific says the project has been achieving record rates of production and strong profitability in recent quarters and has recently increased its ore reserves and mineral resources and has plans for further drilling programs.
Highlands says meanwhile, it remains focused on completion of its proposed streaming transaction with Cobalt 27, announced in May.
The transaction requires the approval of the joint venture partners in the Ramu project, including MCC and the Mineral Resources Development Company of PNG (MRDC); and is likely to involve MRDC entering an equivalent streaming transaction with Cobalt 27. Highlands is continuing to work with MRDC, MCC and Cobalt 27 to finalise the transaction.
Highlands Pacific Limited holds an 8.56 percent interest in the Ramu Nickel and Cobalt Project, which will increase to 11.3 percent upon repayment of project loans to MCC.
The Ramu nickel cobalt mine is located 75km west of Madang.