(MENAFN- ProactiveInvestors - Australia) Highlands Pacific (ASX: HIG) has announced that the US$1.5 billion Ramu Nickel Cobalt Mine has recently completed loading its maiden shipment of mixed nickel cobalt hydroxide intermediate product from the Basamuk process plant in Papua New Guinea.
The structure for the Ramu Joint Venture is 85% to a Chinese syndicate, 8.56% to Highlands Pacific, 3.94% Mineral Resources Ramu Limited (a subsidiary of MRDC) and 2.5% Mineral Resources Madang Limited (a landowner company).
The shipment will be sent to a Chinese customer, and included 576 (dry) tonnes containing around 217 tonnes of nickel and 19 tonnes of cobalt.
The maiden shipment is for commissioning only, with amounts to increase as the project builds to its full capacity
So far year to date production from Ramu is around 9,465 tonnes (dry) of mixed nickel cobalt hydroxide intermediate product, containing around 3,536 tonnes of nickel and 332 tonnes of cobalt.
Highlands potential 20.55% in Ramu
Highlands 8.56% interest in Ramu will increase to 11.3% at no cost to Highlands after repayment of the project debt (estimated to take 8 years).
From commissioning, Highlands has access to its pro-rata 8.56% share of Ramu's post-debt servicing, net cash flow. Highlands also has an option to acquire an additional 9.25 interest in Ramu at fair market value, which could increase the company's interest in the mine to 20.55%, if the option is exercised.
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