Production of contained nickel at the Ramu Nickel-Cobalt operation in Papua New Guinea fell 4% in the second quarter of 2026, while nickel and cobalt sales increased and prices strengthened, according to Nickel 28 Capital Corp.
Ramu produced 8,234 tonnes of contained nickel in mixed hydroxide precipitate (MHP) in the three months to June 30, compared with 8,564 tonnes in the same quarter of 2025. Cobalt production rose to 811 tonnes from 787 tonnes.
Nickel sales increased 14% to 8,967 tonnes from 7,846 tonnes, while cobalt sales rose 23% to 881 tonnes from 719 tonnes.
Nickel 28 holds an 8.56% joint-venture interest in Ramu, which is operated by Metallurgical Corporation of China.
The company said the operation maintained strong production despite completing one of three scheduled annual high-pressure acid leaching, or HPAL, train maintenance shutdowns during the quarter.
For the first half of 2026, Ramu produced 17,019 tonnes of contained nickel and 1,666 tonnes of contained cobalt, compared with 15,534 tonnes and 1,435 tonnes, respectively, in the first half of 2025.
Nickel prices also provided support during the quarter. The average London Metal Exchange nickel price rose 20% year over year to US$8.24 a pound, while the average cobalt price increased 68% to US$25.65 a pound.
However, higher sulphur prices pushed production costs higher. Costs, net of byproduct credits, rose to US$4.81 a pound of nickel produced in MHP from US$3.21 a pound a year earlier. First-half costs increased to US$3.78 a pound from US$3.39 a pound.
Nickel 28 Chief Executive Officer Craig Lennon said the results demonstrated the reliability of the Ramu operation despite the scheduled maintenance shutdown.
“Ramu delivered another strong quarter of operational performance during the second quarter of 2026, with robust production and sales volumes that continue to demonstrate the reliability and consistency of the operation,” Lennon said.
He said the remaining two planned shutdowns were completed shortly after the end of the quarter, leaving the operation positioned for a strong second half of the year.
Lennon said market conditions remained supportive, with higher nickel and cobalt prices and strong payable terms for both metals supporting operating cash flow.
He identified sulphur as the project’s main cost pressure, citing tight global supply following disruptions that have kept prices elevated across the HPAL industry.
The company also highlighted Indonesian government production quotas under the RKAB system as a key factor for the global nickel market, saying future quota allocations could influence Indonesian supply and global nickel prices.
Ramu’s nickel inventory stood at 1,094 tonnes at June 30, down from 1,828 tonnes at March 31.
Nickel 28 said the operating figures were preliminary and unaudited and remained subject to audit, final adjustments and potentially material changes.
