Pacific / New Caledonia

New Caledonia's FLNKS backs Kanak opposition to Vale sale

15:53 pm on 20 August 2020

Leaders of New Caledonia's pro-independence FLNKS movement say they back Kanak chiefs opposed to the sale of the Vale nickel plant.

A photo taken on May 27, 2015 shows Brazilian Vale's nickel processing plant of Goro in southern New Caledonia. Photo: AFP PHOTO / FRED PAYET

Indigenous groups in the south of New Caledonia plan a demonstration on Friday calling for a rejection of the sale to New Century Resources of Australia.

An FLNKS leader Alosio Sako said it was out of question to let go a non-renewable resource or to allow a foreign company to get hold of New Caledonia's assets.

The Melbourne-based miner is being given another three weeks to finalise the purchase of the 95 percent stake put up by Vale's parent company in Brazil.

Those opposed to the sale insist that New Caledonia's nickel ore should be processed onshore.

However, Vale as well as another company, SLN, want to sell ore to improve their bottomline, with the government in principle agreeing with the nickel companies.

To that end the mining code is in the process of being amended.