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Eramet: Operation Rescue Plan succeeds, but Xinka Nickel Mine Project still faces challenges
Jan 13,2021 17:14CST
Source:SMM compilation
The content below was translated by Tencent automatically for reference.

Recently, Eramet announced that the rescue plan of Eramet, a global mining and metallurgical group, aims to ensure the sustainable recovery of the group's New Caledonia subsidiary and has achieved the desired impact under normal operating conditions. It points out that its subsidiary, Societe Generale Nickel, (SLN), has specifically managed to reduce production costs.

SLN's rescue plan is based on three levers, including implementing a new business model based on factory ferronickel production and low-grade ore exports to increase productivity and reduce energy prices. As a result, an application for authorization to export another 2 million tons of nickel ore per year has been submitted to the Government of New Caledonia, which has yet to be voted on.

In addition, since the tender for the new power plant has already begun and is expected to be held in February, the cost of electricity should also be greatly reduced. However, the situation in SLN became extremely critical, with all its mining centres affected by intermittent blockades that lasted for several weeks.

Eramet said this was because the company had "become an incidental victim of local conflicts unrelated to ValeNouvelle- al é donie". SLN was forced to adjust its day-to-day mining and metallurgical operations in response to mine disruptions, which also affected the loading of ore ships.

The seriously deteriorating operation poses risks to the smelter of the plant and a financial burden on the company. The company said the major progress made in the rescue plan could be undermined. In this context, the Nationalist Party of Sierra Leone, which is currently receiving special authorization procedures, plans to submit a request to the President of the Noum é a mixed Commercial Court for the initiation of reconciliation procedures. Eramet said that if the company's situation deteriorates in the coming weeks, it may need to consider submitting protective measures, administrative procedures or liquidation.

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