Including marketing of the products of Koniambo

The crisis will not go through the Koniambo metallurgical project. This is essentially the message issued by Dominique Dionne, Vice-President in charge of Corporate Affairs of Xstrata Nickel, three days of the Management Committee to be held in Koné. "The project continues." We have already paid out $ 1 billion and additional commitments have been made. No question of going back, says. Koniambo remains one of the most interesting asset of the planet, due to its nickel content.

Xstrata, which relies on a rebound in the course of the nickel in 2010, believes that it "is very important that the plant in the Koniambo, a budget of $ 4.1 billion, arrives in production on the scheduled date, early 2011", says Dominique Dionne, highlights the control of costs, favoured by the sharp fall in the cost of shipping and the review of contracts opportunities offered by the decline in the price of raw materials.

Unequal partners

For the Swiss giant, which overall has a line of credit of $ 5.1 billion, the financing of the New Caledonian plant is not a problem. This is not the case of the company mining of South Pacific (SMSP), its majority partner (51), who had to abandon in full crisis to respond to at least a call for funds. Its CEO, André Dang, is since the beginning of November tour of Asian financial institutions for credit that will allow it to follow the rhythm of Xstrata or, failing that, to find partners. Contractually, nothing does required it, but if the company managed by the pro-independence North province wants quickly recover the dividends of the factory, it must participate in its funding from its construction.

To do this, André Dang could go up to give a minority stake in the SMSP. Today, the company belongs to 87 in the North province, which has no intention to dispose of it. André Dang himself has live about 8, which could be the subject of a transaction.

The issue is size, because Xstrata, which already has budgeted investments to the construction of the site, would be more than ever in a position of strength failure of the SMSP. Including marketing of the products of Koniambo. Switzerland is particularly anxious to keep the full autonomy in this field, because the sale of most of its mineral resources since its inception, entrusted to its powerful shareholder and compatriot Glencore, is the number one global commodity trading. For memory, earlier this year, disagreement about the marketing had been for much of the failure of the attempted merger between Xstrata and Vale.

Rising power

Currently, nearly a thousand people working on the site of the Koniambo project, located in the heart of the North province of New Caledonia. In 2009, this workforce is expected to double with the arrival of foreign workers Filipinos and Chinese for "work of large volumes to be run in tight deadlines", explains Dominique Dionne.

During this time, the other project of treatment of nickel, led by Goro Nickel, to become ValeInco New Caledonia on 19 December, is progressing. The inauguration of hydrometallurgical plant located in Bay of Prony, is scheduled for the second half of 2009. SLN, for its part, plans to reduce its production the year next to about 50,000 tonnes to avoid Overstock ore in edge of sea and, especially, to limit its losses valued at EUR 1 million per day.