MCC propped Madang
The National aka The Loggers Times
RAMU NiCo’s mining project in Madang has spent more than K600 million on local procurement, chairman and director of Ramu NiCo Management (MCC) Ltd Zhao Shimin said.
Zhao said Ramu NiCo created a huge demand for local business houses and stimulated both Madang and PNG’s economic development through the local procurement.
He said the company spent millions of kina in infrastructure development and provided business opportunities, including business spin-off opportunities, to the four landowner associations.
The project also provided jobs for locals, Zhao said.
Zhao said this during the signing of the Ramu NiCo project revised memorandum of agreement (MoA) last Tuesday in Madang.
“By the end of 2012, the total purchases made locally amounted to K600 million.”
From 2001 to 2012, total value of business contracts given to land owner companies reached K61.6 million.
“The economic status of landowners had been improved and landowner companies at different levels were able to develop and expand,” Zhao said.
“Starting from 2008, the company provided K270,000 to the four landowner associations — KBK, Basamuk, Inland Pipeline and Coast Pipeline through — its school fee aid programme,” he added.
The miner also upgraded important infrastructures, including construction of Ramu bridge leading to Usino and KBK mine, road between KBK mine and Usino Junction and road around Basamuk Refinery.
Zhao stressed that the company was also dedicated to help agriculture development through agriculture aid projects, technical training, management training and coaching, donations of seeds and fertilizer and others.
He said all of this led to development of rice farming, cocoa plantations, fishing and livestock farming.
“At least 3,000 jobs were provided during construction period and a further 1,100 more were provided when the project entered production period and this number would increase year by year,” Zhao said.
Ramu nickel project boosts economy
RAMU NiCo Project’s investment in Madang Province has created huge demand for local business houses and consequently has stimulated both Madang and PNG’s economic development through local procurement with the subsequent spending of well over K600 million.
Ramu NiCo also spent millions of Kina in infrastructure development and provided business opportunities, including business spin-off opportunities to the four landowner associations and provided employment opportunities for the locals.
Chairman and director of Ramu NiCo Management (MCC) Ltd, Mr Zhao Shimin said this during the signing of the Ramu NiCo Project revised memorandum of agreement (MOA) last Tuesday.
Mr Zhao said most of the benefits delivered under the old (2002) MOA were mostly outside of the MoA as part of Ramu NiCo’s corporate assistance towards the local impacted areas. Most were delivered during the construction phase of the project.
“By the end of 2012, the total purchase made locally mounted to K600million,”
“From 2001 to 2012, the total business opportunity contract value given to land owner companies reached K61, 605, 103. The economic status of land owners has been improved and land owner companies at different levels were able to develop and expand,” Mr Zhao said.
He reiterated that Ramu NiCo also constructed and maintained medical aid post at the project impacted areas to provide needed medical services to villagers, constructed and maintained schools and assisted children with school fees.
“Starting from 2008, the company has provided a sum of K270,00 to the four landowner associations; KBK, Basamuk, Inland Pipeline and Coast Pipeline, through its school fee aid program,” he said.
Ramu NiCo has also gone further and upgraded important infrastructures, including the construction of the Ramu Bridge leading to Usino and KBK Mine, the road between KBK Mine and Usino Junction and the road around Basamuk Refinery.
The chairman also highlighted that the company was also dedicated to assistimg the agriculture development through agriculture aid projects, technical training, management training and coaching, donating seed, fertiliser and others, all of which led to the development of rice farming, cocoa plantations, fishing and livestock farming.
Ramu NiCo also provides technical training to land owners and local people with lots of job opportunities.
“3000 direct employment opportunities were provided during the construction period and 1100 were provided when the project enters production period and this number will increase year by year,” Mr Zhao said.
Madang Governor, Jim Kas and Usino-Bundi MP, Anthon Yagama thanked Ramu NiCo for the positive changes towards Madang and pledged their support to ensure the Project successfully reach its full production in 2015.
Miner plans long stay
The National aka The Loggers Times
THE Chinese Metallurgical Company MCC, developers of the Ramu Nico project in Madang, is here to stay, chairman Zhao Shimin says.
He said that despite the falling nickel price on the world market causing major setbacks for them, the company would continue operations in the country.
“Many companies, in the face of such a drastic drop, would be forced to shut down operations or lay workers off on a huge scale,” Shimin said.
“MCC is suffering from these falling prices, we are having difficulties in production but we still have to work harder.
“We must not lose our initial cause. MCC will devote all efforts and aspire to realise our goal.”
Speaking in Chinese and interpreted by a female official into English, Shimin said the first joint venture signing in October 2005 after the first memorandum of agreement with Highlands Pacific in 2000, the revised agreement after nearly six years was a milestone.
Shimin said with the Government’s 10-year tax-free holiday, the company managed to build a world-class refinery at Basamuk which saw the first load commissioning on Dec 6, 2012.
“The Banu Bridge construction, Usino to Kurumbukari road works and the bridges done, including assistance to schools and health centres along the inland and coastal pipeline areas, agriculture aid projects such as the distribution of seeds, fertilisers and training being conducted have amounted to a total purchase cost of K600 million,” he said.
He said K61 million was given to landowner association companies for spin-off businesses as well.
Chairman of coastal pipeline, Lima Mullung reminded national and provincial government representatives of their input in making the Ramu Nickel Foundation work in terms of local business development emphasising on small to medium enterprises.
More benefits for Ramu NiCo LOs
Franklon Kolma | Post Courier
MINISTER for Mining, Byron Chan said the O’Neil-Dion government is recognizing the significance of Ramu NiCo Project and has endorsed upfront funding for the SSG or Infrastructure Grant through the national budget process, including other funding undertakings through the National Government’s annual Development Budget.
“Please allow me on behalf of the Prime Minister Hon Peter O’Neil to assure you all of the Government’s commitment to fulfill its various undertakings in the Revised MOA,” Mr. Chan said.
Mr. Chan represented the National Government in the signing of the Revised Memorandum of Agreement (MOA) of Ramu NiCo Project last Tuesday Dec 3 in Madang when he assured the of governments commitments.
When commenting that the signing ceremony was the milestone in the life of Ramu Nickel Project and the people of Usino-Bundi, RaiCoast and Madang as a whole, Mr. Chan also warned the landowners and impacted communities to prepare themselves for huge benefits the Revised MOA would deliver.
“To our landowners, these are huge investments and developments coming your way. I fore see opportunities in the Revised MOA but I also encourage you look outside of the box,” Mr. Chan said.
He said in the Revised MOA which the NEC approved on Oct 2 last month, the National Government has committed to build infrastructures including separate townships, one for Usino-Bundi and another for Basamuk in the Rai Coast.
The government will also look at upgrading the deteriorating Rai Coast Highway and Usino Bundi roads, pay the balance of K10 million seed capital, recognizing Ramu Nickel Foundation to be the development vehicle and provide funding of K3 million in Infrastructure Development Grant or SSG over the next 20 years of the Project life to be managed by the Foundation.
“Your Provincial Government has also made significant commitments of K1 million towards the south road at Kurumbukari in the Usino-Bundi district and the establishment of the Environment Unit within the Madang Provincial Administration,” Mr. Chan said.
The Minister also told the gathering that the Joint Ventures have committed substantial amount of resources including K5 million towards the South Road at Kurumbukari, funding of landowners associations, K50,000 per year for community education assistance program, K80,000 for one-off Micro Credit Scheme, K80,000 per year for health scheme and commitment to a conceptual mine closure and rehabilitation plan by Ramu NiCo.
He urged the landowners to accommodate the benefits under thee Revised MOA while at the same time support Ramu NiCo to deliver the Project.
“I want to appeal to all of us to sit down and talk things over if there are disagreements and not to disrupt the operations of the Company,” Mr. Chan said.
He said Ramu NiCo is currently facing technical bottleneck including the slumping nickel metal price and urged all stakeholders and landowners to give their support.
“So lets work together to give the security this Project needs to operate smoothly for all of us,” the Minister said.