RAMU MINE RESUMES OPERATIONS

(From the National, Tuesday, August 18, 2009)

THE proposed US$1.37 billion (K3.68 billion) Ramu nickel project in Madang province resumed normal operations on Sunday after being shut for the past four weeks. Managing company Ramu NiCo Management (MCC) Ltd resumed the operations on instructions of chief inspector of mines Mohan Singh. The mine operations were halted on July 22 following statutory order of July 21 by Mr Singh on grounds of health inspectors wanted the company to rectify.

“In view of the noticeable progress made by the company in the critical areas as well as their ongoing efforts, the company was permitted to resume operations at their project”, he said yesterday.

But strict regulatory conditions as stated in a letter of August 15th from Mr Singh, would be applied. “The inspectorate aims to keep a constant vigil on the company to ensure compliance of its instructions and help the company discharge its statutory obligations”, he said.
“The project aims to start operations next year producing about five million tonnes of laterite ore with a final output of about 33,000 tones of high grade nickel and 3,300 tonnes of high grade cobalt at Basamuk, to be shipped overseas for smelting and refining.

The 20 year project, now at the construction stage, was scheduled for commissioning this year end and was expected to export nickel and cobalt semi-finished products during next year, during which it would contribute 5-8% to PNG’s gross domestic product (GDP).
Highlands Pacific Ltd (HPL), which holds 8.56% interest in the project, yesterday hailed the resumption orders, adding that issues of health and safety were important for the staff and the project.

HPL said the site – specific improvements which focused on compliance in some areas of the project, did not affect the overall construction timetable and commissioning. HPL managing director John Gooding said the company was pleased that work was back pleased that work was back to normal and the safety review had not unduly delayed the construction and commissioning timetable.

“Health and safety is always of paramount importance and we support the initiatives that will improve the awareness and safety of employees. While civil works and workings within height limited have been ongoing for the past week, full activity has now resumed,” Mr Gooding said.

Mr Singh allowed partial operation at the sites to engage people on non-critical limited work to allow Ramu NiCo to bring about 450 people back to work apart from the 340 people already engaged in the rectification work.