Koniambo Nickel SAS Updates on Plant Status and Stakeholder Discussions

February 28, 2024

In a detailed briefing from the Vavouto site in Voh, Neil Meadows, Chairman of Koniambo Nickel SAS (KNS), addressed the current status and future prospects of the northern New Caledonia nickel plant, which has been on standby for the past six months. The halt in operations is part of a strategic pause to facilitate Glencore's search for a buyer for its shares in the plant.

During the press conference held on Wednesday, February 28, Meadows aimed to clarify the situation amidst circulating rumors. Discussions with the French government in Paris, the partnership with Société minière du Sud Pacifique (SMSP), the potential inclusion in the nickel pact, and the operational plan for the plant's "hot" shutdown from March to August were among the key topics discussed.

Glencore's refusal to accept the government's proposal and the subsequent rejection of Glencore's financial demands have marked a pivotal moment in the plant's transition phase. While details on potential buyers remain confidential, the search is ongoing, with incentives from the nickel pact expected to attract interest by offering subsidies for the energy transition.

Meadows emphasized the critical partnership with SMSP, describing it as "indispensable" for KNS's ongoing operations and focus on industrial expertise. He attributed Glencore's decision to exit to shareholder pressures and the challenging market conditions.

The press conference also highlighted key figures related to the Nord plant:

Production reached 17,000 tonnes in 2021, 25,400 tonnes in 2022, and is projected at 27,200 tonnes for 2023.
The workforce as of February 2024 includes 1,308 KNS employees, 72 Glencore group expatriates, and 450 subcontractors.
KNS has contributed significant economic benefits, with contracts worth 250 million euros in the last year alone, and a total investment of 5.3 billion euros in Caledonia since the plant's inception. Furthermore, salaries paid during the operational phase have amounted to 893 million euros.

As KNS navigates through this transitional period, the management's commitment to maintaining industrial efficiency and seeking a viable future for the plant remains paramount. The outcome of these efforts will significantly impact New Caledonia's nickel industry and its stakeholders.