China Business News reported that China Metallurgical Group Construction and its partners will invest USD 1.37 billion to develop the Ramu nickel and cobalt project at Papua New Guinea in Australian partner Highlands Pacific Ltd.

Highlands Pacific in a statement said that of the total USD 560 million will be lent by the Export Import Bank of China.

Ramu nickel-cobalt project is the largest investment project for Chinese enterprises in overseas markets and is also one of the largest nickel-cobalt reserves untapped in the world. With estimated reserves of 143 million tonnes of nickel-laterite, the project is expected to produce 31,150 tonnes of nickel and 3,300 tonnes of cobalt in the next 20 years. The project is expected to be commissioned in the second half of 2009.

Australian Highland Pacific Ltd has an 8.56% interest in the Ramu project, while MCC-JJJ Mining Development Company, which serves as a consortium for a number of Chinese entities, owns 100% of MCC Ramu, which in turn holds 85% of the Ramu project. China Metallurgical Construction Group, or MCC, owns 61% of MCC-JJJ, and other shareholders are Gansu Jinchuan Group, Jilin Jien Industry and Jiuquan Iron and Steel Group.