Nickel and No to Independence: New Caledonia Sticks to France – by Scott Tibballs (Nickel Investing News – November 6th, 2018)

Nickel Investment News

The French Territory of New Caledonia has voted to remain with the Fifth Republic, returning a 56 percent ‘no’ vote on becoming an independent state.
New Caledonia is the world’s third-largest nickel supplier with an annual output of 210,000 metric tonnes.

Mining and smelting is the backbone of the territories economy and would be the basis of the economy of a potentially future independent New Caledonia — a possibility still on the cards as the Noumea Accords signed in 1998 promised three referendums.

For the small pacific territory though, independence from Paris — which provides subsidies — would mean being exposed completely to the volatile nickel price, which has haunted miners in recent years.

A number of mining companies operate in New Caledonia, with Vale (NYSE:VALE) being the most prominent of the global miners.

Vale’s local operation, the VNC site, has long been plagued with problems, posting US$1.3 billion in losses from 2014 to 2016. It was over budget and late when it first opened in 2010, immediately coming up against local opposition.

For the rest of this article: https://investingnews.com/daily/resource-investing/base-metals-investing/nickel-investing/nickel-independence-new-caledonia-sticks-france/

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