Eramet’s nickel mining subsidiary Société Le Nickel (SLN) has lobbied New Caledonia officials to appoint an expert to help turn around its export business.
According to media reports, SLN has posted losses attributable to Eramet over the last year, and now it risks insolvency. The latter intends to increase SLN’s production to 2.5mn wmt from 1.6mn wmt exported in FY 2019 to ensure profitability. However, the Caledonian government is opposed exporting its natural resources.
Since Eramet posted a $733mn loss in H1 2020, it’s no longer in a position to financially support SLN, which is close to exhausting a $600mn loan from Eramet four years ago, which was co-ordinated with the French government. Consequently, it’s approached the Caledonian government to assist SLN in bolstering operations and to grant permission to export 2.5mn wmt nickel ore this year.