2 Sep 2020

Vale sale in New Caledonia labelled 'dangerous'

4:30 pm on 2 September 2020

Leading New Caledonian politicians have warned against the planned sale of the Brazilian-owned Vale nickel plant to an Australian company.

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

The territory's three members of the French legislature wrote a letter to the head of Vale Eduardo de Salles Bartolomeo, urging him to put off the sale to New Century Resources.

They said with a referendum on independence from France due next month, the completion of the sale this month would be unimaginable and even dangerous for New Caledonia and the company.

They also said the sale wasn't a private transaction but it also had to associate New Caledonia's institutions.

The politicians, who all belong to the anti-independence Caledonia Together party, earlier called on Vale to postpone the announcement of a buyer.

Vale extended its negotations with New Century Resources for six weeks after financing arrangements failed to be completed in July as planned.

Pro-independence parties and Kanak chiefs are firmly opposed to the sale, and last month staged the biggest march in months in protest at the deal.

Another mass rally against the sale is expected next week.

Caledonia Together said it wanted to convene an extraordinary session of Congress to examine the proposed sale process.

It also wanted a committee formed comprising New Caledonia's key institutions, including the indigenous groups.

The party also demanded that the Southern Province hold a public information event on environmental demands put to Vale.

Caledonia Together wanted a greater role for New Caledonia as a whole in the Vale assets.

The Vale plant was put up for sale in December after running up losses in the hundreds of millions of dollars.

Vale, which acquired the project when it took over the Canadian miner Inco in 2006, was estimated to have spent $US9 billion on the Goro plant.

Part of Vale's pre-sale restructure included the sale of nickel ore but pro-independence parties firmly opposed changes to the mining code to allow this.

Vale's changes involved prioritising the production of NHC, or nickel hydroxide cake, which was in demand for batteries for electric vehicles.

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