6 Jan 2016

Further woes for New Caledonia nickel industry

10:23 am on 6 January 2016

Nickel producers in New Caledonia have suffered setbacks amid this week's massive stock market decline in China.

After a decade of technical and financial difficulties and conflicts with the local population, the plant had hoped to return to profits in 2015.

A photo taken on May 27, 2015 shows Brazilian Vale's nickel processing plant of Goro in southern New Caledonia. Photo: AFP PHOTO / FRED PAYET

New Caledonian media have collated figures, showing that the key stake holders lost up to 5.3 percent of their share value.

The companies, Eramet, Glencore and Vale, have huge investments in nickel plants but all operated at a loss last year estimated to total about one billion US dollars.

The price of nickel on the London market however has seen a modest rise after last year's huge slump.