7 Dec 2020

Macron urged to intervene in New Caledonia's Vale crisis

9:14 am on 7 December 2020

The French president Emmanuel Macron has been urged to intervene in New Caledonia's difficulties over the planned sale of the Brazilian-owned Vale nickel plant.

An appeal has been lodged to him by the territory's members of the French legislature as well as the president of New Caledonia's Congress, who have warned of an imminent political, economic and social crisis.

French President Emmanuel Macron takes part in a ceremony on the New Caledonia island of Ouvea. His visit to the island, the scene of a 1988 hostage crisis, was contentious.

French President Emmanuel Macron takes part in a ceremony on the New Caledonia island of Ouvea. His visit to the island, the scene of a 1988 hostage crisis, was contentious. Photo: AFP

Vale has held off finalising a sale after the French overseas minister last week organised roundtable discussions via videolink with those for or against the deal with a new consortium Prony Resources.

Opponents, who want Vale to instead accept a bid by the Northern Province's Sofinor and its partner Korea Zinc, clashed with police who broke up a roadblock near the Vale site at the weekend.

Vale has said it will shut the plant in a few weeks if a sale fails, which could trigger thousands of job losses.

Vale has lost billions with its New Caledonia plant, which is the region's costliest industrial installation.

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