Two potential buyers have submitted offers for Glencore’s 49% stake in the mothballed New Caledonian nickel producer Koniambo Nickel SAS (KNS), following site visits conducted late last year, KNS announced.
KNS, part of New Caledonia’s struggling nickel sector, ceased operations in March 2023 after Glencore decided to sell its stake.
Despite continued discussions with potential buyers, the company shut down its furnaces in August when no offers materialized within the six-month deadline set by Glencore.
KNS President Alexandre Rousseau revealed that two groups, which had expressed interest prior to the shutdown, conducted site visits between late October and early December and have now submitted proposals.
These offers are currently under review by KNS shareholders. Further details about the bidders remain undisclosed.
Glencore declined to comment, while SMSP, KNS’ majority shareholder with a 51% stake and the mining investment arm of New Caledonia’s northern province, was unavailable for comment.
The New Caledonian nickel industry has faced persistent losses due to high operating costs and was further destabilized by riots in May 2023, sparked by indigenous Kanak protests over electoral reforms.
Other nickel firms in the region are also navigating challenges:
- Prony Resources resumed production in December after a seven-month halt caused by unrest. Prony is actively seeking a new partner to replace minority shareholders, including Trafigura.
- Sibanye-Stillwater, a South African precious metals producer, stated in September that while it is evaluating Prony as a source for battery-grade nickel, it has no acquisition plans.
- Societe Le Nickel, owned by French mining group Eramet, is operating at reduced capacity due to mine blockades.
With the bidding process underway, the future of KNS and its role in the global nickel market remains uncertain, as stakeholders seek solutions to revitalize New Caledonia’s beleaguered nickel sector.
