17 April 2012 Ramu Nickel Cobalt Mine Update Load Commissioning Continues Successfully Highlands Pacific Limited (ASX: HIG) is pleased to advise that the US$1.5 billion Ramu Nickel Cobalt Mine is continuing with load commissioning of the first of three autoclave circuits.

The mine commenced treating ore through one of the three high pressure autoclaves on 4 March 2012 and has now been operating continuously for 6 weeks with no major processing issues. In that time the process plant has treated 300,000 tonnes of slurried ore producing 486 tonnes of mixed nickel cobalt hydroxide intermediate product.
By the end of April 2012 the autoclave currently operating is planned to be shut down for inspection and the second autoclave circuit be started while working with approval from and in conjunction with the relevant PNG regulatory authorities. This shut down and start up will occur at the same time to ensure continuity of production. This planned approach is to ensure that all supporting systems, such as plant and fleet maintenance, are in place to support full operating capacity.
When in full production, Ramu will produce 31,150tpa of nickel and 3,300tpa of cobalt as a mixed hydroxide product, placing it among the world's top 15 nickel producers.
Highlands currently holds an 8.56% interest in the Ramu project which will increase to 11.3% at no cost after repayment of the project debt (estimated to be 2018). At this point, with 11.3% of the project and assuming nickel and cobalt prices are as they are today, Highlands would be expecting to receive around US$20m annually and with spikes in nickel as always this could rise significantly. Highlands also has an option to acquire an additional 9.25% at fair market value which would increase its interest to 20.55%. This increase to 20.55% would be a very strategic holding in such a world class asset with rights to market our share of the product.
The project's majority owner is Shanghai and Hong Kong listed, Metallurgical Corporation of China (MCC).

Managing Director of Highlands Pacific Mr John Gooding said today: "This is a very good start for the project although there is still a long way to go to reach the goal of full ramp