Visiting Chinese Vice Premier Li Keqiang on Wednesday attended a ceremony to celebrate crucial progress made on a major joint mining project between China and Papua New Guinea.

Chinese Vice Premier Li Keqiang (L) shakes hands with a Papua New Guinean worker during a celebration ceremony of the Ramu nickel project by China Metallurgical Group Corp., in Port Moresby, Papua New Guinea, Nov. 4, 2009. Chinese Vice Premier Li Keqiang and Papua New Guinean Deputy Prime Minister Puka Temu attended the celebration ceremony here on Wednesday. [Liu Jiansheng/Xinhua]

Leaders from both countries hailed the ceremony, held at the Chinese Embassy to Papua New Guinea, as a milestone in bilateral cooperation.

The Ramu Nico project, located in the province of Madang, is one of the biggest nickel and cobalt mines operated by Chinese companies. It also is China's biggest investment project in the South Pacific island nations.

The project is mainly owned by China's MCC-JJJ Mining development company, while Australian investors, the Papua New Guinea government and local landowners also have a stake in the joint venture. It was expected to be in operation earlier next year.

Li said at the ceremony that Ramu Nico was a landmark project between China and Papua New Guinea. He said that the fact that the project has been successfully implemented and has made crucial progress was proof that there is much potential for bilateral cooperation between the two countries.

Li praised the Chinese operating company, MCC Ramu Nico Limited, for carrying out a sustainable development concept and for emphasizing corporate social responsibility, which he believes has created a good environment for the project and signified the friendship between the two countries.

Nickel is a strategically scarce resource in China. After the Ramu Nico project comes into operation, it will help balance the supply-demand relationship of nickel, both in China and on world markets.

For Papua New Guinea, the project was expected to contribute to a more than 10 percent growth in its gross domestic product (GDP).Local residents will also benefit substantially from the project because of the much-need investment and jobs it will bring.

Li said the mutually beneficial cooperation between the two countries will bear meaningful fruit.

The vice premier also thanked the Chinese workers involved in the project for their work with their Papua New Guinean colleagues to turn the Ramu Nico project into a model of bilateral cooperation.

Papua New Guinea Deputy Prime Minister Puka Temu also attended the ceremony and expressed thanks to the Chinese government and companies for meeting a tight construction schedule despite the adverse impact of the global financial crisis.

Temu also hailed the project as a milestone in bilateral cooperation. He said it has contributed to the development of the national economy and brought tangible benefits to local people.

Arnold Amet, the governor of Madang province, told Xinhua that the project provided necessary jobs for the local people. He also praised the project for improving public services and infrastructure in the region around the mine.

Luo Shu, chairperson of MCC Ramu Nico, said her company would continue to implement the principles of professionalism, internationalization and localization.

She also said her company would continue to act as a responsible Chinese resources developer and help local communities achieve sustainable development.

Li arrived in Port Moresby on Tuesday on the last leg of a three-nation tour in the South Pacific. The trip has also taken him to Australia and New Zealand.