Glencore agreed to pay worker salaries and for the furnaces to be kept alight until the end of August. Credit: Sheldon Cooper via Getty Images.

Caledonian nickel producer Koniambo Nickel SAS (KNS) said on Tuesday (3 September) that discussions surrounding the purchase of Glencore’s 49% stake in KNS are continuing, despite the shutdown of its furnaces over the weekend.

Whilst the New Caledonia region is believed to hold some of the world’s largest nickel reserves, the industry in the region has been struggling.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

KNS halted its mining and plant operations in March after mining giant Glencore decided to sell its stake in the company.

At the time, Glencore agreed to pay worker salaries and for the furnaces to be kept alight until the end of August.

When fully operational, KNS registered a nickel production capacity of 60,000 tonnes per year.

Alexandre Rousseau, vice-president of KNS, told Reuters that switching off the furnaces meant most of the 1,200 employees have lost their jobs.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Rousseau explained there were three separate groups interested in the potential investment, with two now holding advanced discussions with Glencore about purchasing the 49% stake.

Both groups intend to visit the KNS site in the north of New Caledonia in the coming weeks.

A spokesperson from Glencore told the news agency that KNS was in control of maintaining the furnaces.

The decline of the New Caledonia nickel industry has also affected other companies. French mining group Eramet announced its subsidiary SNL has continued to operate at minimal capacity, while local nickel processor Prony Resources has been forced to suspend its operations.

Despite the New Caledonia nickel industry suffering, GlobalData projects global nickel production will increase from 3.35 million tonnes (mt) in 2023 to 3.56mt in 2024.