Papua New Guinea mineral resource company Highland Pacific says the temporary closure of the Ramu Nickel processing plant in Madang will affect nickel production this year.
The newspaper, The National, reports the company had been advised that operations at the Ramu Nickel process plant would be suspended pending an investigation into the recent death of a worker.
A Chinese employee died three weeks ago when a high pressure steam supply line erupted at the Basamuk nickel refinery.
Two other staff were injured.
Highlands holds an 8.56 percent interest in the Ramu joint venture, which is majority owned and operated by a Chinese corporation.
Highlands said the duration of the investigation, being conducted by the PNG Mineral Resources Authority and the Mines Inspectorate, remained uncertain.
It said the impact of the shutdown on production would not be known until they knew how long it would be for.