Published by Global Banking and Finance Review
Posted on January 8, 2025
PARIS (Reuters) - Two potential buyers for Glencore's stake in mothballed New Caledonian nickel producer Koniambo Nickel SAS (KNS) have submitted offers following site visits late last year, KNS said.
Part of a loss-making nickel industry in French-controlled New Caledonia, KNS halted its operations in March after commodity group Glencore decided to sell its 49% interest.
The nickel firm then shut down its furnaces at the end of August after failing to get an offer within a six-month period set by Glencore, though discussions with interested parties continued.
Two groups that had expressed interest prior to the shutdown have submitted offers after conducting site visits between end-October and early December, Alexandre Rousseau, president of KNS, told Reuters.
The proposals were being examined by KNS' shareholders, he said, without giving further details.
A Glencore spokesperson declined to comment.
KNS' other shareholder with a 51% stake is SMSP, the mining investment arm of New Caledonia's northern province. SMSP could not be immediately reached for comment.
After years of losses due to high operating costs, the New Caledonian nickel sector was dealt a further blow by riots that erupted in May over an electoral reform that angered the indigenous Kanak population.
Among other nickel firms, Prony Resources relaunched production in December after a seven-month stoppage following the unrest.
Prony is also seeking a new partner to replace minority shareholders including commodity merchant Trafigura.
South African precious metals producer Sibanye-Stillwater said in September it was studying Prony as a possible source for battery-grade nickel, but was not interested in acquisitions.
A Prony spokesperson said a site visit by a potential investor would take place soon, without commenting further.
Societe Le Nickel, controlled by French mining group Eramet, continues to operate at low capacity due to the blocking of some of its mines.
(Reporting by Gus Trompiz; Editing by Mark Potter)
