Delays Expected Before Vale Nickel Plant Opens In New Caledonia

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$4 billion setback from acid plant incident forced Vale to cut costs

WELLINGTON, New Zealand (Radio New Zealand International, June 13, 2012) – Reports from New Caledonia say delays in launching the Vale nickel plant is expected to last several months.

Noumea’s daily newspaper says last month’s incident at the acid plant of Vale New Caledonia caused serious damage to the set-up which cost more than four billion U.S. dollars to build.

The paper says the company, which reportedly employs 4,000 people, is considering its options to cut costs.

Last month, Vale declared force majeure over the acid incident, saying it couldn’t meet its supply contract with Queensland Nickel.

Earlier this year, Vale New Caledonia was fined 5,000 U.S. dollars over an acid spill at its Goro plant three years ago when about 2,000 liters ended up in a lagoon which is a World Heritage site.

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