Metallurgical Corp. of China Ltd.'s majority-owned Ramu nickel-cobalt plant in Madang, Papua New Guinea, spilled waste into the Basamuk Bay over the weekend, Reuters reported Aug. 28, citing three sources.
A source close to the company told the newswire that the leakage, which turned parts of the bay red, was a "small accident" and had no adverse effect on the environment.
But Madang Governor Peter Yama urged for the government to shut down the plant after calling the spillage the "worst environmental disaster" in the country's history, Reuters wrote, citing local newspaper Post-Courier. The plant's mining license expired in April and had a poor environment record, Yama said in the cited report.
Authorities have already made a preliminary report on the incident, Reuters reported, citing Mineral Resources Authority Managing Director Jerry Garry, who did not provide more details.
Metallurgical Corp. of China owns 56.97% of the plant, while Jilin Jien Nickel Industry Co. Ltd. and Jiuquan Iron & Steel (Group) Co. Ltd. each hold an 11.05% stake. Cobalt 27 Capital Corp. acquired an 8.56% interest through its recent takeover of Highlands Pacific Ltd.
Jinchuan Group International Resources Co. Ltd. and Mineral Resources Development Corp. also own a 5.93% and 3.94% stake, respectively, while a local company holds the remaining 2.5%.
Ramu produced about 35,354 tonnes of nickel and 3,275 tonnes of cobalt in 2018, according to S&P Global Market Intelligence data.
