MCC in Papua New Guinea deal

China Metallurgical Construction Group Corp (MCC), the country's leading construction company, signed a memorandum of understanding with the Papua New Guinea government to jointly develop the mineral resources, agricultural, fish-processing and construction industries in that country, state media reported. In one of the largest non-oil/gas investment by a Chinese company in a foreign country to date, MCC in March signed a contract to develop a US$650m project, in which it owns a 85% stake, for the Ramu nickel deposit in Papua New Guinea. The project is expected to produce more than 31,000 tons of nickel annually for at least 20 years, with MCC owning the right to purchase the entire yield, which would help supply China's demand for nickel, a key alloy for making stainless steel.