Raw material production in New Caledonia: Glencore stops financing nickel mine

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This decision is the result of months of discussions and discussions with responsible government and other stakeholders. “Despite the support offered by the French government, KNS remains an unsustainable business due to high operating costs and the current very weak nickel market conditions,” Glencore said in a statement issued on Monday. he wrote.

The group can therefore no longer justify its shareholders continuing to make losses by financing the mine. Glencore will seek to find a potential new industrial partner for KNS.

Last September, the Swiss raw materials trader “informed the KNS board that it would finance KNS’s business only until February 29, 2024.” At that time, Glencore also announced that it would seek an alternative financing source.

KNS was launched 10 years ago as a flagship project to restore balance between the Northern and Southern states of New Caledonia, where it is located. Approximately 1,350 people work in the company. But it was never profitable.

Glencore holds 49 percent of KNS. The remaining 51 percent belongs to the New Caledonian company Société Minière du Sud Pacifique SA (SMSP). According to the statement, Xstrata, which was acquired by Glencore, and later Glencore, have spent a total of $9 billion to finance KNS since the project started.

(SDA)

Source :Blick