14 Jan 2006

New Caledonia to supply nickel to processing plant in South Korea

7:19 am on 14 January 2006

Further details have emerged about a deal done between the South Korean steel making company Posco and the New Caledonian nickel entity SMSP.

The New Caledonian company will provide nickel to a processing plant in South Korea which will produce 30,000 tonnes of ferronickel.

SMSP confirms Posco, will invest US$350 million in the venture, holding 49 per cent of capital.

SMSP will provide 1,800,000 tonnes of nickel each year from existing sources in New Caledonia.

SMSP, owned by the government of the mainly Kanak northern province of New Caledonia, is engaged in the construction of a new nickel smelter there, in conjunction with the Canadian firm Falconbridge.

The Koniambo project will produce 60,000 tonnes of nickel each year, reserved for smelting within the territory.