It was the flagship project for the development of northern New Caledonia. But due to a lack of buyers, Koniambo Nickel SAS ceased its activity on Saturday 31 August, the day on which the vast majority of the 1,235 employment contracts ended.
On loan since February, the emblematic nickel production plant of Koniambo Nickel SAS (KNS), a symbol for eleven years of the economic development of the region born of the political will of the separatists, has not found a buyer in the six months planned by the raw materials giant Glencore. The latter, a 49% shareholder in the site, decided to divest itself of this factory with an innovative process, backed by an exceptional mining mass but a real financial hole.
Since construction began in 2007, KNS has accumulated a huge debt of more than 13 billion euros. Glencore has borne the entire responsibility, following the end of the shareholder agreement linking it to Société Minière du Pacifique Sud (SMSP), which represents the interests of the northern province. So, in a context of a global nickel crisis and rising energy costs, Glencore decided to throw in the towel.
Negotiations are underway with at least two potential buyers, according to SMSP, which maintains its initial objective: to process the mineral locally for the benefit of the development of the province. The factory as it exists will close within a few weeks, while the temperature of the furnaces heated to more than 1,600°C is reduced.
“There are multiple possible scenarios”
With 1,200 direct jobs and at least 700 indirect ones, the company is a local driving force. The population has increased by 40% since construction work began in 2009. The number of companies in Voh, Koné and Pouembo, the surrounding municipalities, has increased from 2,500 in 2005 to 4,000 today.
But once the furnaces are shut down, resuming metallurgical activity is unthinkable for a year and a half. “There are multiple possible scenarios. A buyer has an interest in seeing an activity, even if only partially, relaunched very quickly.”“This is the first time that the factory has been in operation, and the workers have been working hard to make sure that the site looks its best,” said Alexandre Rousseau, vice-president of KNS. “In any case, the employees have worked hard to make sure that the site looks its best: grass has been cut, there has been no waste, and the signs have been repainted. Outside the factory, there are fears of a major social crisis.”
The site’s employees are not yet on the labour market, but Cap Emploi, which manages job seekers in the Northern province, has already recorded an increase in the number of applicants and a drop in offers due to subcontracting that has been halted since February. As a result, Cap Emploi has fewer than 180 jobs to offer, for a total of 1,700 people actively looking for work.
