In the second quarter, French mining giant Eramet experienced mixed results in its nickel and nickel ore production, with notable differences between its operations in Indonesia and New Caledonia. Improved productivity led to a rise in output at Weda Bay, Indonesia, while socio-political disturbances in New Caledonia caused significant declines.
Eramet's high-grade nickel ore production at Weda Bay surged by 56% to 5.913 million tonnes in the second quarter, maintaining the same growth rate in the first half of the year with a total production of 12.255 million tonnes. This increase was driven by an effective mining plan that improved the grade of marketable ore and enhanced inventory management.
Conversely, the production of low-grade nickel ferroalloys fell by 17% to 6,600 tonnes in nickel metal content, with a January-June output decline of 11% to 14,000 tonnes. This reduction was due to slowed production from one furnace in the first quarter and scheduled maintenance during the second quarter.
In New Caledonia, Eramet's subsidiary, Societe Le Nickel (SLN), saw a dramatic 73% year-on-year decline in nickel ore production to 389,000 tonnes in the second quarter. This was caused by a halt in mine production across the French-controlled territory due to safety concerns following violent outbreaks that damaged buildings and infrastructure, particularly affecting the Thio and Kouaoua sites. SLN's first-half ore output fell by more than half to 1.403 million tonnes.
Ferronickel production at SLN also dropped by 14% year-on-year in the first half of the year to 17,400 tonnes, hindered by reduced activities at the Doniambo plant. Violence in New Caledonia created difficulties in transporting nickel ore and other essential inputs to the plant.
Due to these challenges, Eramet revised its 2024 external ore sales target from 42 million wet metric tonnes (wmt) to 40 million wmt, as the government did not grant the permit for low-grade saprolite sales.
SLN's financial situation in New Caledonia remains "extremely critical," with most mines suspended since mid-April and the Doniambo plant operating on minimal technical power. Eramet has decided not to provide further financing to SLN but continues to support its operations. In line with an agreement signed in April between Eramet and the French government, France issued €80 million in funding to SLN in July, providing essential support for its ongoing operations.
No comments
Post a Comment