(Adds detail, background on nickel supply)
MELBOURNE, Aug 7 (Reuters) - An attack by armed villagers has forced the temporary closure of a Chinese-owned nickel mine in Papua New Guinea, media reported on Thursday, the latest in a series of supply disruptions for the metal.
The $2.1 billion mine, forecast to produce 22,000 tonnes of nickel in 2014, is operated by Ramu NiCo, which is majority owned and run by Metallurgical Corporation of China Ltd (MCC) .
Ramu NiCo said equipment including nine excavators, a fuel truck and a lighting vehicle were burned and five Chinese workers were injured in the attack on Monday, according to newspaper The Australian.
Computers, printers and phones were badly damaged or removed, the paper added.
Mining and energy projects are the major source of income for Papua New Guinea, but outbreaks of violence sparked by landowner disputes and environmental concerns are not uncommon.
One local report said preliminary investigations found the attacks were spurred by concerns about the company's hiring policies for mine workers. Ramu NiCo has been focusing on training locals so they could work at the mine.
The development of Ramu was delayed by more than two years amid concern about the dumping of mine waste in the sea.
Minority owner Highlands Pacific was not immediately available for comment on the situation at the mine and the Chinese embassy in the capital, Port Moresby, did not respond to requests for comment.
Shares in Highlands Pacific fell 8.3 percent in a market that was down 0.2 percent.
LME nickel prices soared to the highest in more two years in May, above $21,000 a tonne, after a ban on ore exports from major producer Indonesia came into force in January.
Earlier this year, a chemical spill sparked riots in New Caledonia, which closed Vale's Goro nickel mine for about a month, adding to supply concerns.
Prices have since eased, to around $18,700 on Thursday, after Indonesia's new government took a softer stance on its export taxes for copper, turning investors cautious that it may also relax restrictions on nickel. (Reporting by Sonali Paul, Melanie Burton and Lincoln Feast; Editing by Michael Perry)
Our Standards: The Thomson Reuters Trust Principles.
