17 Nov 2020

France dismissive of Sofinor bid in New Caledonia

11:43 am on 17 November 2020

The French government has rebuffed New Caledonian groups seeking to get a local company to take over the Vale nickel plant, which is up for sale.

There have been protests and blockades since last week to push Vale to stop negotiating with a new consortium, Prony Resources.

New Caledonia nickel mine

New Caledonia nickel mine Photo: AFP

Opponents want Vale to instead deal with Sofinor of the Northern Province, which is in partnership with Korea Zinc.

Vale rejected its bid earlier this year and the French overseas ministry said the offer by Prony Resources was the only viable option it knows of.

The ministry also said the recent incidents and attacks wouldn't lead to a positive outcome for New Caledonia.

It also warned that those behind the protests were not exempt from personal responsibility.

Kanak chiefs and pro-independence parties have vowed to maintain their campaign for Sofinor.

In September, Vale's planned sale to New Century Resources of Australia failed, prompting the Brazilian owner to warn of the site's closure if no buyer was found by the end of October.

The Vale plant is a key employer in the very south of New Caledonia's main island.