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PNG stops Ramu nickel project over safety - media

Mon Jul 27, 2009 8:45pm EDT

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SYDNEY, July 28 (Reuters) - Construction of Papua New Guinea's Ramu nickel mine and processing plant has been stopped by the country's mines inspector due to health and safety concerns, PNG media reported on Tuesday.

Work on the project, majority owned by Chinese state-owned China Metallurgical Construction Group Corp, was disrupted last month by fighting between workers after an industrial action.

PNG chief mines inspector Mohan Singh last week ordered a halt to Ramu operations and the withdrawal of everybody from the site on health and safety grounds, said The Post Courier.

Singh directed the company to rectify defects stated in his statutory order of July 21, said the newspaper, but it did not detail the defects.

The project, estimated to cost $1.7 billion, is scheduled to start production in late 2009 and is designed to supply stainless steel mills in China. Highlands Pacific Ltd (HIG.AX) owns 8.56 percent of the project. (Reporting by Michael Perry; Editing by Mark Bendeich)



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