PNG's Ramu Nico Mine Plans K3 Billion Expansion
The Ramu Nico Mine is set to expand its Special Mining Leases (SML) in a project expected to cost over K3 billion. This announcement was made by Ramu Nico Country Manager Assik Tommy Tomscoll during his presentation on the Mining Sector Update at the PNG Resources Summit on Thursday, July 5th.
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| PNG's Ramu Nico Mine Plans K3 Billion Expansion [Photo by Ramu Nico] |
Tomscoll detailed that the capital cost for the expansion is estimated to exceed 1 billion US dollars. Preparations for the SML application have already begun, and activities will commence as soon as the application is granted. The expansion will take place at Bassamuk, the site of their flagship project, and will be financed in-house without the need for external funding.
This expansion is anticipated to double the mine's yield, along with associated investments, employment opportunities, taxes, levies, and royalties paid to landowners. Tomscoll highlighted the significant economic benefits this will bring to the local community and the broader economy.
In addition to the expansion, Tomscoll announced that landowners will receive their equity shares in full this year, as their loans were paid off last year. These shares are managed by the Mineral Resource Development Authority (MRDC). He emphasized that the equity was not financed or assisted by the PNG government, making this project independent and not a liability to the government.
Tomscoll further explained that the PNG government opted not to participate in this project due to its perceived risks and thus does not own any shares. However, the MRDC, acting as a trustee for landowner companies, owns a 6.44 percent share in the project.
This expansion marks a significant milestone for Ramu Nico Mine, promising substantial growth and economic benefits for stakeholders, especially the local landowners who will see increased returns from their equity shares.
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