Glencore has decided to halt funding for the Koniambo Nickel SAS (KNS) business from the end of February 2024.
The decision comes as KNS in the Northern Province of New Caledonia continued to struggle financially and was suffering significant losses.
The company will continue to provide funding for the operations until 29 February 2024.
During this period it plans to explore potential solutions for ongoing losses at KNS, including alternative financing sources.
In a press statement, Glencore said: “At this time, we anticipate activities on site will continue as normal. Glencore will continue to provide financial support during this period, according to the budget, and remains committed to ensuring that KNS operates safely, maximising production and reducing costs.
“We will also continue to support KNS to explore alternative processing routes, lock down reverse polarity improvements and study any other initiatives to help increase the value of the operation.”
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By GlobalData
The commodities miner and trader has provided funding of around $9bn (SFr8.29bn) to KNS since its inception.
Glencore owns a 49% stake in Koniambo Nickel while Société Minière du Sud Pacifique owns the remaining 51% stake.
KNS operations include the Northern metallurgical plant with a nominal capacity of 60,000 tonnes per year, and mining on the Koniambo massif in the Northern Province between Voh and Koné.
Currently, the French Government is looking to reorganise the nickel industry in New Caledonia, reported Reuters.
New Caledonia is estimated to hold some of the world’s largest nickel reserves.
