Finnish Company to Build Power Stations for PNG-China Nickel Project

Text of report by Papua New Guinea newspaper The National website on 3 July

Finnish company Wartsila Corporation has been contracted to build two power stations by year’s end to supply electricity to the Ramu nickel mine in Madang. In an announcement to the Australian Securities Exchange yesterday, joint venture partner Highlands Pacific said contracts have been awarded by Ramu NiCo Management (MCC) Ltd – being the manager and operator of the Ramu Nickel Joint Venture and 100 per cent owned by China Metallurgical Group Corporation – to ensure the energy requirements for the Ramu project are met.

The power plants will provide a minimum 90 MW equivalent (MWe) for Ramu. One of the power plants will be located at the mine site while the other at the refinery site at Basamuk Bay.

Highlands Pacific managing director John Gooding said: “Ramu is progressing well with construction on track to be completed by the end of 2009. Wartsila is one of the world’s leading suppliers of power plant equipment with an excellent track record of delivering to specification and on time. Their reputation, combined with on- ground after sales support, won Wartsila the tender.”

Other notable achievements on the construction of the project include the:

– start of the 135 km slurry pipeline – placement and commencement of welding of the 600mm diameter slurry pipeline both at the mine site and the plant site. About 16km of pipe is in position to be welded;

– wharf construction – all pylons installed with the platform coming on. The wharf is targeted to be completed by the fourth quarter of 2008;

– plant site earthworks – completed;

– plant site foundation and construction – all foundations completed; and

– mine site earthworks and mine site foundations are progressing according to schedule.

Highlands has an 8.56 per cent interest in the Ramu project which will increase to 11.3 per cent at no cost to the company after repayment of the debt raised to finance the project has been completed (estimated to be 10 years).

Highlands’ share of product based on its 8.56 per cent share is 2,666 tonnes of nickel and 282 tonnes of cobalt per annum, rising to 3,520 tonnes of nickel and 373 tonnes of cobalt when equity increases to 11.3 per cent.

Originally published by The National website, Port Moresby, in English 3 Jul 08.

(c) 2008 BBC Monitoring Asia Pacific. Provided by ProQuest Information and Learning. All rights Reserved.