Ramu nickel-cobalt suspension trims output by 3,300-3,800 T - official

Nickel 28 Capital

30/10/2021 11:15

Oct 30 (Reuters) - A pandemic suspension at Metallurgical
Corp of China's  601618.SS  Ramu nickel-cobalt project in Papua
New Guinea will trim output, but the company will fulfil its
contract obligations, an official said on Saturday.
    Nickel and cobalt are key ingredients in making battery for
the burgeoning electric-vehicle industry.
    Ramu NiCo Management Ltd suspended operations on Friday and
hopes to "resume normal operation in early November", Albert
Tobe, a Ramu deputy general manager, told Reuters.
    The two-week suspension will reduce output by 3,300 to 3,800
tonnes of mixed hydroxide precipitate (MHP), but the company
will fulfil all contract obligations including keeping the
current employments status, Tobe said.
    Ramu's production of MHP, a product containing both nickel
and cobalt, rose 7.3% in the first half to 43,066 tonnes from
the same period last year, co-owner Nickel 28 Capital Corp
 NKL.V  said in August. 
    Nickel 28, which owns 8.56% at Ramu, said on Thursday the
site had paused production and operations to protect itself
against rising COVID-19 cases.
    Papua New Guinea, a Pacific island nation of 9 million
people, is in its worst coronavirus outbreak, with daily new
cases hitting a record 962 on Oct. 22 before easing to 336 cases
on Friday, Reuters data showed.
    Ramu ran at 102% of its designed capacity to produce 16,578
tonnes of nickel contained in MHP in the first half, up 2% on
year, while output of cobalt contained in MHP rose 10.4% to
1,518 tonnes, Nickel 28 said.
    Sales of nickel and cobalt content jumped some 50% by volume
in the period, it said.    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Papua New Guinea covid cases    https://tmsnrt.rs/3CyryUf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Mai Nguyen in Hanoi; Editing by William Mallard)
 ((mai.nguyen@thomsonreuters.com; +842438259623; Reuters
Messaging: mai.nguyen.thomsonreuters.com@reuters.net))