Plans for national nickel hub revealed by Kumul Minerals

Kumul Minerals Holdings Limited is planning a national nickel hub in Madang province as part of a wider strategy to process more of Papua New Guinea’s minerals domestically, instead of exporting partially processed products.

Kumul Mineral Holdings Managing Director, Sarimu Kanu outlined the proposal during a question-and-answer session with Business Advantage International Publishing Director Andrew Wilkins at the Business Advantage PNG Investment Conference in Brisbane on Tuesday.

Kanu said the proposed hub would be centred on the expansion of the Ramu nickel-cobalt operation and the construction of a refinery capable of producing nickel cathode and nickel sulphate.

“What is unique about that particular strategy in Ramu is that we are driving the expansion of Ramu from about 32,000 tonnes a year to about 74,000 tonnes of nickel produced a year,” Kanu said.

The proposed expansion, however, remains subject to regulatory approvals, agreements, financing and detailed development work.

Kanu said KMHL had acquired an interest in Ramu NiCo and was looking at acquiring a further interest in the project.

The Independent Consumer and Competition Commission announced earlier this year that it had cleared KMHL’s proposed acquisition of a 1.97 per cent participating interest in the Ramu Nickel Cobalt Joint Venture from Mineral Resources Ramu Limited.

Kanu told the conference that KMHL expected to acquire a further 20 per cent interest within the next few months, although he did not provide further details about the proposed transaction.

Ramu NiCo currently produces mixed hydroxide precipitate, or MHP, at its Basamuk processing plant.

Nickel cathode is used in manufacturing stainless steel, while nickel sulphate is an important material in battery production.

Kanu said the ultimate aim was to make nickel the first PNG base metal exported as a refined metal product.

“We want to aggregate all the nickel prospects in the country to feed into the refinery.

“We want to drive the strategy that nickel will be the first base metal that will be exported in metal cathode form. All the processing will be done in PNG.” He said.

The existing Basamuk processing plant and Kurumbukari mine could serve as foundation customers for new power developments.

Kanu said cheaper power could also help unlock the long-planned Madang Pacific Marine Industrial Zone, which would be difficult to operate competitively using diesel-generated electricity.