ramu mine

A quick update about Ramu and the Chinese putting pressure on the PNG Government.

The Chinese ambassador to Papua New Guinea has paid a visit to Acting Prime Minister, Sam Abal, to discuss the Ramu nickel mine. As we know, the National court sitting in Madang is due to deliver its decision on Tuesday July 26, on the application by local landholders for a permanent injunction preventing the mine from dumping its toxic waste into the sea.

A view is that if the court does rule out marine dumping one option for the Chinese would be to insist that the PNG government pass emergency legislation through Parliament that would effectively over-rule the court and allow the marine dumping.

Although such a move would undoubtedly be very unpopular with people living along the Rai coast, but with a national election looming next year, could be very lucrative for the National Alliance party of the Acting PM.
The PNG government has already passed controversial amendments to the Environment Act to suit the mining industry and has previously passed legislation to assist the logging industry overcome unwelcome court decisions.

So either way, the outcome will end up favourable for HIG enabling them to proceed as planned, which will ensure a re rating of the share price with the uncertainty laid to rest.