The mine commenced treating ore through one of the three high
pressure autoclaves on 4 March 2012 and has now been
operating continuously for 6 weeks with no major processing
issues. In that time the process plant has treated 300,000
tonnes of slurried ore producing 486 tonnes of mixed nickel
cobalt hydroxide intermediate product.
By the end of April 2012 the autoclave currently operating is
planned to be shut down for inspection and the second
autoclave circuit be started while working with approval from
and in conjunction with the relevant PNG regulatory
authorities. This shut down and start up will occur at the
same time to ensure continuity of production. This planned
approach is to ensure that all supporting systems, such as
plant and fleet maintenance, are in place to support full
operating capacity.
When in full production, Ramu will produce 31,150tpa of
nickel and 3,300tpa of cobalt as a mixed hydroxide product,
placing it among the world's top 15 nickel producers.
Highlands currently holds an 8.56% interest in the Ramu
project which will increase to 11.3% at no cost after
repayment of the project debt (estimated to be 2018). At this
point, with 11.3% of the project and assuming nickel and
cobalt prices are as they are today, Highlands would be
expecting to receive around US$20m annually and with spikes
in nickel as always this could rise significantly. Highlands
also has an option to acquire an additional 9.25% at fair
market value which would increase its interest to 20.55%.
This increase to 20.55% would be a very strategic holding in
such a world class asset with rights to market our share of
the product.
The project's majority owner is Shanghai and Hong Kong
listed, Metallurgical Corporation of China (MCC).
Managing Director of Highlands Pacific Mr John Gooding said today: "This is a very good start for the project although there is still a long way to go to reach the goal of full ramp