Koniambo Nickel: Audits Underway Amidst Reprieve Hopes

New Caledonia’s Koniambo Nickel Mine: Audits Underway as Future Hangs in the Balance

Rumors continue to swirl around the Koniambo Nickel (KNS) plant in New Caledonia, fueled by hopes for a potential buyer and eventual restart of operations. These speculations offer a glimmer of hope for the approximately 2,000 employees and subcontractors who have lost their jobs, as well as the wider community impacted by the mine’s closure.

Assessing the Damage: Comprehensive Audits Commence

Koniambo Nickel’s director, Alexandre Rousseau, urges caution, emphasizing that no immediate reopening is planned. “We are just conducting audits and trying to see if, at some point, we could reopen the mine, at what cost and, above all, how to finance it,” he stated.

Verifying Equipment Status After Prolonged Shutdown

The mine has been in care and maintenance since August 31, 2024. Efforts are now focused on potentially restarting mining operations as a first step, pending a comprehensive assessment. A company from Nouméa is currently on-site for two weeks to inspect the condition of key equipment, including approximately ten 745 and 735 haul trucks, capable of carrying 45 and 30 tonnes respectively.

In total, 73 pieces of equipment are undergoing inspection. The primary goal is to determine if they are operational, checking battery conditions and hydraulic systems, as they have been inactive for eighteen months, stored on a platform near the plant.

Restarting the Mine: Challenges and Considerations

Once the audits are complete, the viability of a project to restart mining will be evaluated. The possibility of reopening the mine as a temporary measure whereas a buyer is sought for the entire complex is being considered. However, a key challenge lies in what to do with the extracted ore. Exporting it or transporting it by sea to the SLN plant in Doniambo are potential options, but processing it on-site is not feasible given the current state of the northern plant.

Logistical Hurdles: Transporting the Ore

The direction is also grappling with the logistics of ore transport. The original crusher and conveyor system relied on the Vavouto power plant, which is also currently inactive. Restarting the power plant would be prohibitively expensive. An alternative would involve installing conveyors to transport the ore to the port, but the port is not currently equipped for loading, requiring significant modifications.

These considerations highlight the substantial costs associated with any potential reopening. The coming weeks and months will be crucial in determining the feasibility of restarting mining operations at Koniambo Nickel.

Glencore Continues Search for a Buyer

Interest from Chinese, Indian, and Korean companies has been noted, with several visits to the industrial complex since its shutdown. However, as of now, no potential buyer has emerged with a viable proposal. Reports indicate that a Chinese group is expected to submit an offer this month.

The offer must be compelling to both Glencore and the KNS shareholders. Currently, approximately sixty employees and one hundred subcontractors remain on-site.

FAQ

What is the current status of the Koniambo Nickel mine?

The mine is currently in care and maintenance, with audits underway to assess the feasibility of restarting operations.

Who owns Koniambo Nickel?

Koniambo Nickel (KNS) is a joint venture, 51% owned by Société Minière du Sud Pacifique (SMSP) and 49% by Glencore.

When did the Koniambo Nickel plant shut down?

The plant and mine were shut down in August 2024 after Glencore pulled out of the operation.

What are the main challenges to reopening the mine?

Challenges include financing, logistical issues with ore transport, and the demand for a viable buyer for the entire complex.

Did you understand? Koniambo Nickel has an ore reserve of 62 million tonnes of nickel, located in the Northern Province of New Caledonia.

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