In New Caledonia, the emblematic KNS nickel plant closes its doors

It was the flagship project for the development of northern New Caledonia. But, due to a lack of a buyer, Koniambo Nickel SAS is ceasing its activity on Saturday 31 August, the day the vast majority of the 1,235 employment contracts end.

On hold since February, the emblematic nickel production plant of Koniambo Nickel SAS (KNS), symbol for eleven years of the economic development of the region born of the political will of the separatists, has not managed to find a buyer within the six months given by the giant of raw materials, Glencore. The latter, 49% shareholder of the site, has decided to sell this plant with an innovative process, backed by an exceptional mining massif but a real financial abyss.

Since construction work began in 2007, KNS has accumulated an abysmal debt of more than 13 billion euros. A liability entirely assumed by Glencore, under the terms of the shareholder agreement linking it to the Société minière du Pacifique Sud (SMSP), representing 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 transform the ore locally for the benefit of the development of the province. The plant as it exists will stop in a few weeks, the time to lower the temperature of the furnaces heated to more than 1,600 °C.

“There are multiple possible scenarios”

With its 1,200 direct jobs and at least 700 indirect jobs, the company is a local driving force. The population has increased by 40% since construction began in 2009. The number of companies in Voh, Koné and Pouembout, the surrounding communes, has increased from 2,500 in 2005 to 4,000 today.

But once the furnaces are extinguished, the resumption of metallurgical activity is unthinkable for a year and a half. “There are multiple possible scenarios. A buyer has an interest in ensuring that an activity, even partial, is restarted very quickly.”believes Alexandre Rousseau, vice-president of KNS. The employees have in any case worked to make the site look its best: lawns mowed, no waste, repainted signage… Outside the factory, there are fears of a major social crisis.

The site’s employees are not yet on the job market, but Cap emploi, which manages job seekers in the Northern Province, has already recorded an increase in the number of registrants and a decrease in offers due to the cessation of subcontracting since February. As a result, Cap emploi has fewer than 180 positions to offer, for a total of 1,700 people actively looking for work.