Baar, Switzerland / Kone, New Caledonia17 November, 2014
Glencore is pleased to announce that today French President, François Hollande officially inaugurated the Koniambo Nickel Project (Koniambo) in New Caledonia, a joint venture between Société Minière du Sud Pacifique (SMSP) and Glencore.
President Hollande was joined by Paul Néaoutyine, President of the North Province, Ivan Glasenberg, CEO of Glencore, André Dang, President of SMSP, Peter Hancock, President of Koniambo Nickel, and Vincent Bouvier, French High Commissioner in New Caledonia.
The construction of Koniambo Nickel commenced in 2007 and represents a $7 billion investment in New Caledonia, majority financed by Glencore. Its state-of-the-art infrastructure and proven nickel smelting technology, along with a world-class ore body, makes Koniambo a leading player in the global nickel market and is transformative for New Caledonia’s nickel industry. At peak production, the mine will provide steady employment for approximately 950 workers, with a focus on local employment, and indirect employment for thousands of others.
Ivan Glasenberg, CEO of Glencore, commented:
“We are honoured that the French President has recognized Glencore’s ongoing commitment to and investment in New Caledonia by officially opening Koniambo Nickel. This inauguration marks a milestone for our New Caledonian operations and for the country’s nickel industry. We look forward
to continuing our well established collaborations with the local community, government and our joint venture partners as we continue the ramp up period to nameplate capacity of 60ktpa.”
Since construction, Koniambo has contributed significantly to New Caledonia, including:
- 2,750 direct local jobs and approximately 1,500 indirect jobs;
- More than 150,000 hours of workforce training;
- 85% of contracts and orders placed going to New Caledonian suppliers (50% of which
- is from the surrounding Voh-Koné-Pouembout region); and
- More than EUR 1.9 billion in direct benefits (during the project/construction phase)
Sustainability, both in terms of construction and ongoing operation, has always been a central focus at Koniambo. More than 10 years were spent in producing comprehensive environmental impact assessments prior to construction in 2008. Several initiatives have helped to protect New
Caledonia’s rich environmental diversity, including:
- Replanting of the mangroves removed to create a deep-water port; mangrove seedlings are grown in a nursery run by a community business founded by Koniambo and located in a neighbouring tribe;
- Revegetation of 50 hectares of mined area since 2008, as part of an ongoing program designed to gradually regain the original biodiversity in the maquis areas disturbed by its activities. This has been done while protecting the threatened species and by introducing erosion control measures, as well as designating protected areas to preserve the zones deemed most valuable from a biodiversity point of view
- Transplantation of 1,200 colonies of coral to prevent damage when port and channel were constructed, with regular marine sampling to monitor the health of the lagoon and coral reef; and
- Ongoing ambient air quality monitoring, with results shared weekly on a website managed by the Koniambo Environment Committee, a collection of local stakeholders and NGOs.
About Glencore
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group’s operations comprise over 150 mining and metallurgical sites, oil production assets and agricultural facilities.
With a strong footprint in both established and emerging regions for natural resources, Glencore’s industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.
Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing industries. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore employ around 200,000 people, including contractors.
About SMSP
SMSP is a mining and metallurgical producer based in the North Province of New Caledonia. Its majority shareholder is the North Province Investment and Economic Development Agency, Sofinor.
SMSP is a leading nickel ore exporter, with joint-venture offshore processing operations in China and South Korea.
SMSP gained control of the Koniambo Massif in 1990 and was a founding partner in Koniambo Nickel.
About Koniambo Nickel
Based in the North Province of New Caledonia, Koniambo Nickel SAS operates a fully-integrated worldclass industrial complex which, at peak production, will make New Caledonia one of the world’s largest nickel producers. It produces high quality ferronickel shot for export to the world’s markets.
Koniambo Nickel’s operations comprise a mine, ore preparation plant, metallurgical plant, coal and gas plants, water purification and treatment plants, power station and port.
Thanks to a high-grade nickel deposit, Koniambo Nickel forecasts long-term, low-cost operations, governed by a very demanding sustainable development policy.
With its origins enmeshed in New Caledonia’s history, this industrial complex is a powerful driver for New Caledonia’s economic and social development and and is helping to build its future. Koniambo Nickel employs around 2,000 people, including contractors.