30 Nov 2020

French overseas minister to organise political round table on sale of Vale nickel plant

8:05 am on 30 November 2020

The French overseas minister, Sebastien Lecornu, will organise a round table with New Caledonia's political leaders on the sale of the Vale nickel plant.

Sebastien Lecornu at New Caledonia House in Paris.

Sebastien Lecornu at New Caledonia House in Paris. Photo: supplied FB French Overseas Ministry

The minister's announcement follows weeks of tension surrounding exclusive negotiations between Brazilian-owned Vale and Prony Resources, a consortium comprising of Trafigura, a Swiss-based commodity trader, and various New Caledonian backers.

While the Prony Resources bid has received significant support from anti-independence groups in the Southern province, it has been rejected by pro-independence groups.

The pro-independence groups are supporting a bid by Sofinor, the financial corporation of the pro-independence Northern province, in partnership with Korea Zinc.

Pro-independence parties have called for France to intervene in the negotiations with Vale.

Vale had dismissed the Sofinor-Korea Zinc proposal saying it did not present the required financial and environmental guarantees.

However, Sofinor said it was denied access to the nickel plant and to critical information from Vale in order to conduct due diligence and put forward a comprehensive bid.

On Thursday, Mr Lecornu and New Caledonia's pro- and anti-independence political leaders met to discuss New Caledonia's institutional future.

However, two members of the pro-independence Caledonian Union walked out of the meeting citing France's refusal to consider its demands regarding the sale of the Vale nickel plant.

Ends