Analysis – New Caledonia’s current nickel industry crisis has prompted several pro-French parties to call for a “state of economic urgency”. The French Pacific archipelago’s nickel industry (including its three major plants) is in dire straits: in the North of the main island, Koniambo’s (KNS) main stakeholder, Anglo-Swiss giant Glencore, is now withdrawing from the venture.
The measure announced a few days ago that is putting the whole site in sleep (“care and maintenance”) mode has become very real. In the South of the main island, Société Le Nickel – SLN – plant, a subsidiary of French giant Eramet recently had to be bailed out by a French government loan to avoid an ominous bankruptcy.
The other Southern plant, owned by Prony Resources, is also trying to keep its head above water and is currently engaged in a major restructuring of its stock to allow a major industrial partner to invest. On Wednesday this week, KNS chairman Neil Meadows held a press conference in Vavouto, on the now-idle Koniambo mining site.
The whole site has now started to implement the “care and maintenance” measures announced by Glencore earlier this month, making the announced steps painfully real.
For the rest of this article: https://www.rnz.co.nz/international/pacific-news/510489/new-caledonia-s-nickel-crisis-prompts-call-for-economic-social-state-of-emergency