New Caledonia Government Develops Safeguard Plan for Nickel Factories Amid Market Challenges

Crisis in Nickel Industry Prompts Action

The New Caledonian government has recognized the urgent need to address the challenges faced by its nickel industry. Prony Resources, SLN, and KNS factories have struggled with decreased competitiveness due to global market changes, particularly influenced by Indonesian policy shifts and Chinese investment dominance.

Factors Impacting the Industry

The region's nickel factories have been hit hard by falling nickel prices, largely a result of China's economic slowdown. Despite internal efforts to cut costs and improve productivity, these factories are on the brink of payment cessation, signaling a need for immediate intervention.

Collaborative Effort for a Rescue Plan

In response, the New Caledonia government, in coordination with French authorities and local provinces, has initiated the development of a ten-year safeguard plan. This plan aims to ensure the factories' short-term survival and restructure their economic model for long-term competitiveness.

Intense Discussions and Stakeholder Engagement**

A recent working group session involving provincial representatives, financial inspectors, and economic councils focused on outlining potential contributions from local communities and the state. The goal is to finalize this plan by January 2024 and initiate discussions with factory shareholders.

Call for Collective Mobilization

The government is advocating for a united front to preserve this critical industry. The potential closure of these factories poses a severe threat to New Caledonia's economy, potentially leading to massive job losses and a collapse of the social and health systems.

Pragmatic and Responsible Approach

The government's approach emphasizes pragmatism and responsibility, aiming to navigate through these challenging times effectively. The focus is on leveraging available resources and strategies to stabilize and revitalize the nickel sector, crucial for New Caledonia's economic and social stability.