New Caledonia's Vale Nickel Company Faces Review, Possible Closure

Persistent low global nickel prices makes plant unprofitable

WELLINGTON, New Zealand (Radio New Zealand International, July 4, 2017) – The operation of the loss-making Vale New Caledonia nickel company is to be reviewed in light of the persistently low nickel price.

This was announced by Fabio Schvartsman who is the new CEO of the Brazilian mining conglomerate Vale that owns the plant at Goro in New Caledonia's south.

The plant's production costs are too high for it to be profitable and the outlook is poor.

Last November, Vale said a $US200 million loan from the French state had reduced the risk of it shutting its multi-billion dollar plant.

The funding offer was announced by the French prime minister Manuel Valls to help shore up the territory's economy which is reliant on nickel production.

One report said Vale New Caledonia used $US1.3 billion in the past three years and has to be shut down.

Radio New Zealand International
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