Prices affecting PNG Ramu NiCo sales: Chairman

RAMU NiCo Management (MCC) Ltd in Madang, Papua New Guinea is facing severe sales problem.
This was announced by the company’s chairman Zong Shaoxing during its annual working conference on Friday.
Zong said last year, the company sold 25,525 tonnes of nickel and 2388 tonnes of cobalt, which were only 75.05 per cent and 72.06 per cent of the annual plan of sales, leaving 11,704 tonnes of nickel unsold.
He said the main reason was that a large number of customers had requested to cancel or reduce orders due to worldwide economic downturn.
Nickel and cobalt prices plummeted.
As a result, the country’s major nickel/cobalt mine developer had no choice but to cut product price and reduce price coefficient.
Company president Gao Yongxue reiterated the chairman’s statement in saying 2018 had been another challenging year for it.
“Prices for our products have fallen dramatically and we have had some difficulty in selling our product,” he said.
“Once more, we have serious financial issues to deal with.”
Zong said the company would continue its high and stable production with all technical and economic targets delivered, securing the company’s leading position in the industry with high profitability and survivability, setting a new benchmark for global peers.
He said in 2019, MCC must make every effort to increase inventory turnover, prioritise capital efficiency and safety, boost revenue and be adaptable to the changing market environment.
Zong urged MCC to take advantage of its new energy project, balance sales volume and metal discount coefficient, make breakthroughs in expanding the market and achieve annual sales and production targets.
He said MCC must continue to optimise production organisation, improve work efficiency, create new production records and achieve the profit target.

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