Ramu mine still operating below capacity and making ‘great’ losses

MCC's tax free Ramu mine headquarters in Madang

After four years of production, the Ramu mine is STILL not operating at full capacity and is making “great” losses – despite the upbeat PR from MCC…

MCC sets new production record
The National aka The Loggers Times | October 17, 2016
THE exportable mixed hydroxide precipitate output from the Ramu NiCo project in Madang set a record last month – a production capacity of 95.2 per cent.
According to operator Ramu NiCo ManagementMCCLtd, the achievement sets a new record since the project load commission in December 2012.
The company in a statement said total production was 7100.49 tonnes.
Metal nickel was 2637.87 tonnes while metal cobalt was 264.45 tonnes.
The company reported that based on the working principle of “stabilise and improve production” and subtle management at the Kurumbukari (KBK) mine and Basamuk refinery.
Both successfully completed their monthly target with production cost at both sites greatly reduced.
However, the company still recorded a great loss due to the low nickel price and high operational cost.
The company had taken measures to control operational costs including reducing bulk materials.
“The Ramu NiCo management team had set up the operational principle of compliance in safety, operation at high efficiency, processing at stable and proper maintenance for both KBK mine and Basamuk refinery for the remainder of 2016 to reduce deficit.”
MCC manages the Ramu Nickel project on behalf of the Ramu Nickel Joint Venture.
The project boasts a total reserve of 140 million tons of nickel including over 78 million tons that are proven and mineable. It employs integrated processes including mining, concentration and refining.

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Filed under Financial returns, Papua New Guinea

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