Glencore says it would stop funding its loss-making Koniambo Nickel SAS in New Caledonia at the end of February

Glencore said on September 28 it would stop funding its loss-making Koniambo Nickel SAS (KNS) business it co-owns in New Caledonia at the end of February, market sources said, adding to the troubled nickel market in the French Pacific region. The industry has brought more pressure. The commodities miner and trader, which has provided $9 billion in funding to KNS since its inception, said it would work with the company, its joint shareholders and the French government to explore options to address ongoing losses, including finding additional funding. The French government is currently overseeing discussions to restructure New Caledonia's nickel industry, which has the world's largest nickel reserves but whose three smelters have faced losses for years due to high costs and social unrest. French mining group Eramet, the majority shareholder of New Caledonia's other nickel producer SLN, has previously said it would not provide further financing for the unit. The French government provided SLN with a 40 million euro ($42.17 million) emergency loan earlier this year to avoid financial collapse. Glencore and the Northern Provincial Government of New Caledonia jointly hold a 49% stake in KNS.