Prony Resources Prepares to Restart Nickel Production in New Caledonia

Nickel miner Prony Resources New Caledonia is gearing up to restart production after a six-month suspension caused by civil unrest in the French territory. The company, which operates the Goro mine and a plant producing battery-grade nickel, has brought its staff back to the facilities as it prepares for a resumption of activities, according to a company spokesperson.

Prony Resources is one of the three major nickel producers in New Caledonia, a remote archipelago in the South Pacific whose local economy relies heavily on the nickel industry. The region's nickel sector has been under significant strain, initially impacted by a slump in prices last year following a surge in Indonesian production. This year, the situation was further exacerbated by the worst civil unrest the islands have seen in decades, which damaged mining infrastructure and halted operations.

The French government is currently working on a plan to stabilize the nickel industry, which includes subsidies and investments in renewable energy to support local producers. The efforts aim to place the sector on a steadier footing after a series of financial and operational disruptions.

Prony Resources has stated that it aims to return to a production rate of 3,500 tons of product per month, although a specific restart date has not yet been confirmed. The company produces nickel hydroxide cake (NHC), which is a combination of nickel and cobalt chemicals used in electric vehicle batteries.