Aug. 29 (Bloomberg) -- China Metallurgical Construction Group Corp.'s $1.4 billion Ramu nickel project in Papua New Guinea hasn't been delayed after landowners this week closed the site and attacked Chinese workers, said partner Highlands Pacific Ltd.

Workers have returned to construction sites at the project, which is on schedule to start output in the second half of next year, John Gooding, managing director of Highlands Pacific, owner of a 8.56 percent stake in Ramu, said today by phone from Brisbane.

The project is estimated to produce about 31,150 metric tons of nickel and 3,300 tons of cobalt annually for 20 years. Nickel averaged about 43 percent lower in the second quarter on concern slowing economic growth will cut demand.

``There was a bit of an altercation, terribly unfortunate, but fortunately no one was severely injured,'' he said. ``This is not a material issue. These things happen quite regularly with projects in Papua New Guinea.''

Highlands Pacific rose 2.4 percent to 8.5 cents at the 4:10 p.m. Sydney time on the Australian stock exchange.

The site of the proposed nickel refinery was closed on Sunday after a dispute between landowners and the provincial government of Madang, Gooding said. The construction site for the treatment plant at nearby Kurumbukari was also closed for ``a few days,'' though workers are now back at the site, he said.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net

Last Updated: August 29, 2008 02:31 EDT