Prony Resources to Resume Nickel Operations in New Caledonia After Prolonged Shutdown

A recent announcement from Prony Resources has revealed that the New Caledonian nickel producer is set to resume its operations on Monday, following a six-month hiatus. The shutdown had been prompted by civil unrest in the French-administered Pacific region, which disrupted essential services.

The breakthrough comes as essential infrastructure services, including power, water supply, and road access, have been restored, allowing the company to prepare for a restart. Prony Resources made this announcement while refraining from providing a specific timeline or production estimates.

This development is significant for New Caledonia‘s nickel industry, which has been suffering financial losses exacerbated by the political and social unrest. The turmoil that began in May was fueled by proposed electoral reforms, leading to widespread demonstrations. In response, the French government has opted to postpone local elections and withdraw the contentious reform, while maintaining a partial night-time curfew in the region.

Prony Resources is one of the prominent nickel producers in New Caledonia, employing thousands in its mining and processing operations. Last year, the company reported a production of close to 32,000 metric tons of nickel. Finding a new investor remains a priority, as Prony looks to replace its existing shareholders, including the prominent international commodity trading company, Trafigura.

In related industry developments, South African precious metals firm, Sibanye-Stillwater, expressed interest in evaluating Prony as a prospect for sourcing battery-grade nickel back in September. However, it clarified that it has no current plans for acquisitions.

Meanwhile, another major nickel entity in New Caledonia, Koniambo Nickel SAS, is also grappling with challenges. It has ceased operations, actively seeking a new investor to succeed current stakeholder Glencore, which has put its 49% holding up for sale. Societe Le Nickel is managing to operate only at reduced capacity, grappling with disrupted supply chains and relying on substantial French governmental assistance as its primary shareholder, Eramet, has ceased further investment.