2 days Ago By Tiash saha
Nickel miner Prony Resources New Caledonia will recommence operations at its Goro mine and battery-grade nickel production plant, located in the south of New Caledonia, after a six-month suspension caused by local riots in the French territory, reported Bloomberg . The return of the workforce marks a significant step for Prony Resources, one of the three major nickel producers in New Caledonia. Goro mine is designed to produce 57,000tpa of nickel and 5,000tpa of cobalt.
Laterite nickel is extracted from an open-pit site, which is processed in a feed preparation plant and treated in a high-pressure acid leach facility. The industry faced near-collapse last year due to plummeting nickel prices, exacerbated by increased production in Indonesia. In August 2023, a government report warned that the sector requires refinancing and restructuring to support EU critical raw materials independence.
The report analysed the long-term negative performance of three of France’s most significant metals corporations operating in New Caledonia, including Prony Resources. Compounding the economic challenges, New Caledonia experienced civil unrest this year, leading to substantial damage to mining operations and disrupted processing plant activities. Amidst these difficulties, the French Government is working to stabilise the industry through subsidies and investments in renewable energy.
In February, the government provided $150m (€142.12m) to avert the collapse of Prony Resources and to continue its operations until 2026. Prony Resources is targeting a monthly production goal of 3,500t of nickel and cobalt chemicals, which are key components for electric vehicle batteries.
However, the company’s spokesperson noted that while preparations are under way, a specific date for production restart has not been confirmed. Sibanye-Stillwater, a South African precious metals producer, is exploring Prony Resources as a potential supplier of nickel for its battery-grade material production at the Sandouville plant in France..
