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Highlands says PNG mine attack unlikely to affect output guidance

Highlands says PNG mine attack unlikely to affect output guidance

Photo by Bloomberg

8th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Highlands Pacific on Friday confirmed the temporary closure of the Ramu nickel/cobalt project, in Papua New Guinea, but said the mine would still meet its forecast production guidance for 2014.

The $2.1-billion mine was forced to close after it was attacked by locals.

Operator Metallurgical Corporation of China has estimated that the damage to the plant would run to about A$4-million, as a direct loss of equipment. The mine would be shut down for a period of four to five days, while the process plant itself has been slowed down, but not stopped.

Prior to the incident, the plant had been achieving average rates of production at above 80% of the nameplate capacity, Highlands Pacific said.

It was not expected that the incident would have a material impact on the forecast 2014 production.

Meanwhile, various government bodies have been notified of the incident and police reinforcements were now on site and an investigation into the incident was under way.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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