A Papua New Guinea-based company, Highlands Pacific Limited, has signed a 650 million US dollar deal with a Chinese company to develop its Ramu nickel mining project in Madang Province.
Under the agreement, the China Metallurgical Construction Corporation will finance and manage the project, and will have the right to buy all of the nickel and cobalt produced.
The agreement represents the first significant mining investment by a Chinese company outside of China and Highlands Managing Director Ian Holzberger, says it's a major milestone in the development of Ramu and for the PNG economy.
"It's a good deal for the current joint venture partners, both Highlands and MRDC, and for Papua New Guinea as a whole because obviously you'll have a material impact on the economy through foreign exchange, through export earnings and employment and taxation, corporate and personal taxation."
Highlands Managing Director Ian Holzberger