Weeks of riots and protests have paralysed the New Caledonian nickel sector, with mining operations suspended and processing plants struggling to operate amidst high costs and dwindling feed.
The protests
were sparked by a proposed voting reform that would allow French residents who
have lived in the country for over a decade to vote in local elections. This
culminated in riots in May, leading the government to declare a two-week state
of emergency.
These events exacerbated the challenges faced by the New
Caledonian nickel industry, particularly for processing plants already
grappling with high operating costs and mounting competition from Indonesia.
In an attempt
to rescue the industry, the French government previously proposed a “Nickel
Pact,” which would have granted up to EUR200m (US$217m) in emergency relief aid
to producers. The pact was initially supposed to be passed by the end of
January, but remains unsigned as political tensions have escalated, creating
uncertainty about the stability of the New Caledonian nickel sector.