https://www.miningweekly.com
Business|Energy|Export|Mining
Business|Energy|Export|Mining
business|energy|export|mining

Eramet's New Caledonia nickel business seeks help with new cash crunch

18th November 2022

By: Reuters

  

Font size: - +

PARIS - SLN, the New Caledonian nickel producer controlled by French mining group Eramet, is seeking help from a court-appointed expert to lead talks with stakeholders as it faces a cash squeeze from production setbacks and soaring costs, it said on Friday.

SLN has for years tried to improve profitability which has been hit by social unrest and energy supply issues in the French Pacific territory.

After obtaining an increased export allowance in February under a previous rescue plan, SLN's finances have been strained again by weather disruption to output, mounting prices for energy and other inputs, and a fall in nickel prices, Eramet has said.

"SLN is putting everything in place to overcome its cash crisis," SLN said in a statement on Friday.

The nickel producer received in September the last part of 63-billion Pacific Francs ($549.21-million) in loans provided by Eramet and the French state back in 2016.

SLN has requested that an independent expert named by a commercial court lead talks with stakeholders, such as shareholders, government authorities and banks, under a temporary procedure, SLN said.

SLN said it would also launch a "drastic reduction of costs" across the company.

Eramet last month lowered its full-year targets for SLN's nickel production and exports.

Edited by Reuters

Comments

Showroom

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
17th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:1.582 1.618s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: