South African Miner Sibanye-Stillwater Eyes Major Stake in New Caledonia’s Prony Resources
A South African company, Sibanye-Stillwater, is reportedly the most likely bidder to acquire shares in New Caledonia's ailing Prony Resources, according to local news sources. Prony Resources, like other nickel plants in the region, has been struggling due to Indonesia's rise as a major player in the global nickel market and ongoing unrest in New Caledonia since May.
The company has been seeking a buyer for the 19% shareholding held by Swiss trader Trafigura. Recent reports suggest that Sibanye-Stillwater, a significant player in the global minerals market with assets including a hydro-metallurgic processing plant in Sandouville, France, may be the front-runner. Sibanye-Stillwater aims to build an integrated nickel extraction and production project, ultimately positioning itself as a leader in the production of nickel for electric vehicle batteries, especially for the European market.
The potential deal would see Sibanye-Stillwater take over a 74% stake in Prony Resources, including shares held by the Southern Province, as part of a major restructuring effort. Prony Resources, currently in partial shutdown, employs approximately 1,300 staff and an additional 1,700 through subcontractors.
In parallel, a local New Caledonian consortium, Okelani Group One (OGO), has made a last-minute bid to revive the now-mothballed Koniambo (KNS) nickel plant. OGO's business model would focus on producing high-quality nickel for niche markets like aeronautics and cutting-edge technologies, aiming for 15,000 tonnes per year, well below the plant’s original 60,000-tonne target.
The nickel industry in New Caledonia faces significant challenges, with all three of its major plants — Prony Resources, KNS, and Société Le Nickel (SLN) — grappling with production and financial difficulties amid global market pressures.
