Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
Glencore announced on Monday its intention to divest its stake in Koniambo Nickel SAS (KNS) in New Caledonia, while also revealing that production at KNS's processing plant will be suspended for six months as the company seeks a new investor for the struggling business.
Despite France's efforts to salvage New Caledonia's nickel industry, including offering approximately 200 million euros in state support to KNS, Glencore stated that the operation remains unprofitable due to high operating costs and challenging market conditions.
Glencore intends to commence a process to identify a potential new industrial partner for KNS. The French government expressed its commitment to providing state aid for KNS and maintained that an industrial player, rather than the state, should invest in KNS and other nickel processors in New Caledonia. Paris did not rule out the possibility of a Chinese investor.
Glencore clarified that it would continue to fund KNS during the six-month period when the plant will be placed in "care and maintenance." The company aims to avoid a negative impact on core earnings and anticipates significant annual savings from 2025 onward.
KNS is a joint venture between Glencore and Societe Miniere du Sud Pacifique SA (SMSP), controlled by New Caledonia's northern province. The high costs and political tensions in New Caledonia, along with competition from Indonesia, have placed the territory's three processing plants at risk.
The government is working towards an agreement on New Caledonia's nickel sector in the coming weeks but did not provide details on negotiations with SLN and Prony Resources, the other two nickel processors in the region.
Also Read : Veolia to acquire Hungarian gas power plant from Uniper Shell forecasts 50% increase in global LNG demand by 2040
TotalEnergies has signed a sale and purchase agreement (SPA) with Sembcorp Fuels, a wholly owned sub...
Europe 29-Feb-2024
The world’s largest steel industry is currently grappling with significant challenges as it en...
Business 21-Aug-2024
Data from a Japanese auto industry association show that China overtook Japan as the world’s l...
Automobiles 02-Feb-2024
India is developing a new production-linked incentive (PLI) plan for electronics components with the...
Business 19-Feb-2024
JSW Steel is expanding its product mix to minimise India's reliance on coated steel imports by intro...
Large Corporate 30-May-2024
Global HRC trade slows amid weak demand, holidays. Southeast Asia, Europe, and Middle East markets...
Business 03-May-2025