Sibanye-Stillwater, a South African precious metals producer, is evaluating New Caledonia’s Prony Resources as a potential supplier of nickel for its Sandouville plant in France, where it plans to manufacture battery-grade material.
The company is also exploring Indonesia as another potential source for mixed hydroxide precipitate (MHP), which is essential for producing electric vehicle battery materials at Sandouville, according to spokesperson James Wellsted.
Prony Resources, part of New Caledonia’s struggling nickel industry, includes a nickel mine and a hydrometallurgical processing plant.
While Prony has been seeking investors and considering selling a majority stake, Wellsted clarified that Sibanye is not pursuing any acquisitions at the moment. Instead, the company is focused on securing feedstock for its Sandouville plant to support its green energy initiatives.
“We are studying where to source the MHP, which is crucial for battery metal production at Sandouville,” Wellsted explained. A Sibanye team is currently in New Caledonia to assess Prony as a potential supplier.
Prony produces MHP, an intermediate nickel product suited for battery supply chains, and has previously secured a supply contract with electric vehicle manufacturer Tesla. Local media recently reported that Sibanye is in advanced talks to acquire Prony, although Wellsted did not confirm any acquisition plans.
New Caledonia’s nickel sector has faced significant challenges this year, including riots that have halted Prony’s operations since May. Despite these difficulties, Prony remains a key player in the global nickel market.
