Nickel production and earnings of nickel producer Eramet affected by protests

SMM10, 26 Feb: the protests have affected the performance of some New Caledonian mines and will affect Eramet's nickel production and annual profits, French mining groups said on Thursday.

The previous blockade of the mine resulted in a 4 per cent decline in nickel production at the Doniambo smelter in New Caledonia in the first nine months of this year.

Eramet said the Kouaoua mine protested in August over environmental issues, but business was resuming after negotiations with stakeholders.

The group said SLN's nickel production costs had risen to $5.88 a pound in the nine months to September 30, affected by mining disruptions, a fall in the euro against the dollar and rising fuel prices.

Mineral production has increased this year, although two train derailments in Gabon have reduced the amount of manganese transported by the Eramet Comilog subsidiary, however, higher market prices for nickel and manganese have helped to offset the impact of the reduction in production.

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