The small group of islands that comprise French ruled New Caledonia are situated approximately 2000km off the eastern coast of Australia. New Caledonia produces two commodities – nickel and cobalt, with nickel production rating it as the world’s fourth largest producer, after Canada, Russia and Australia, producing around 12% of global nickel production. New Caledonia is the world’s fourth-largest producer of mined nickel and the largest producer of ferro-nickel, and nickel products dominate the economy. Nickel is produced from laterites which have higher nickel grades than those in Australia where lateritic nickel mining has presented numerous problems over the past few years. Nickel and ferronickel production accounts for between 7 – 10% of the country’s GDP as well as contributing 80% towards foreign earnings. New Caledonia’s has enormous resources, estimated at 25% of the world’s resources.
Nickel production is dominated by French company Eramet which has a 60% interest in its nickel mining subsidiary, SLN (Societe Le Nickel) which has operations in New Caledonia. Initially holding a 90% interest in SLN, Eramet was forced to sell a 30% share in SLN to a local consortium that represents the indigenous people of the islands. Through a complex set of mergers and transfers, the French based firm will now have a more representative base in its operations in New Caledonia.
Nickel is produced from several mines, including the Thio, Kouaoua, Nepoui – Kopeto and Etoile du Nord deposits. The new Tiebaghi mine will provide 30% of SLN’s annual production, producing 20 000t /year of contained nickel. Most production is converted to ferronickel ingots at the Doniambo smelter, with the remaining nickel matter sent to France for refining. Independent mine producer’s ore is exported to smelters in Australia.
The Koniambo deposit accounts for 50% of SLN’s output.. However, the Koniambo deposit has been transferred to a company that represents indigenous groups – Societe Miniere de Sud Pacific (SMSP). SMSP, under agreement with Falconbridge, will develop the mine and smelting complex which will handle 54 000 t/year. SLN have opted rather to focus on the Poum deposit, previously held by SMSP.
Other foreign companies active in New Caledonia include Falconbridge, Inco, Argosy Minerals and QNI. Inco have a 85% share in the development of the Goro Deposit. Goro host a potential mineable resource of over 200 Mt grading at 1.6% nickel and 0.17% cobalt. A decision for Inco to develop Goro has been given the go ahead. Annual production from Goro is expected at 54 000t nickel and 5400 t cobalt annually..
