Work is progressing well at the Ramu nickel-cobalt joint venture project in Papua New Guinea with commissioning scheduled for the second half of 2009.

The project will produce 32,000 tonnes of nickel and 3200 tonnes of cobalt per annum when fully operational and has an operating life estimated to be in excess of 20 years.

Highlands Pacific has an 8.56% interest in Ramu, which will increase to 11.3% at no cost to the company after the debt raised to finance the project has been repaid. At that time, Highlands will also have the option to purchase an additional 9.25% at fair market value which would take Highlands’ total interest to 20.55%, a very valuable stake for such a long-life project.

China Metallurgical Construction Group manages and operates the joint venture and is responsible for arranging 100% of the project development costs. Total capital expenditure and commitments to date on the project is approximately US$196m. Some 244 employees are engaged on site.

The vast majority of total earthworks at the processing plant have been completed and site levelling at the ore-washing plant and refinery gas station continues.

Work has started on the Basamuk wharf, which will be the largest wharf in Papua New Guinea), the Ramu River road bridge has been completed and the access road to the mine site has opened.

Construction of the Madang office building continues and the majority of the IT platform has been installed at the Madang office, refinery and mine site. Autoclave manufacturing work is progressing.

PNG’s Acting Prime Minister Mr Puka Temu and China’s ambassador to PNG Mr Wei Ruixing have also inspected the site.

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