Highlands Pacific Ltd. on Oct. 8 confirmed media reports regarding a potential expansion of the Ramu nickel-cobalt project in Papua New Guinea, which may cost US$1.5 billion.

The company noted that Metallurgical Corp. of China Ltd., or MCC, the majority partner in the Ramu joint venture, is investigating the expansion of the project.

Details of any proposed expansion will be announced when finalized, Highlands added in the released statement.

Highlands added it remains focused on completion of its proposed streaming transaction with Cobalt 27, announced in May.

The transaction requires the approval of the joint venture partners in the Ramu project, including MCC and the Mineral Resources Development Co., or MRDC, of Papua New Guinea; and is likely to involve the MRDC entering an equivalent streaming transaction with Cobalt 27.

The project recently increased reserves and resources at the project. Highlands holds an 8.56% interest in the joint venture.