The government takes a key step in nickel export
The government approved a decree on August 4th authorizing the export of nickel from the territory's metallurgical reserves, along with the creation of an extraction royalty and an export tax after being lobbied by two nickel companies seeking to sell low-grade ore. It directly concerns the Koniambo, Tiébaghi and Goro sites and is a key step forward in a subject which has been very controversial.
Photo credit: VINCI CONTRUCTION
It has been qualified as historic by political parties supporting the project. The objectives are to enhance the value of Caledonian nickel and preserve the jobs in the sector while respecting the plan for development of mineral wealth.
Thierry Santa, President of the Government, stated: “The first text proposes the temporary authorization of nickel ore from Caledonian metallurgical reserves export. It intends to give manufacturers the opportunity to export minerals that they could not develop locally until now”.
Concerning the proposal, customers and operators with an interest in Caledonia will be the first consulted regarding the sale of nickel ore. “Authorizations will be granted by government decree for a period of five years, renewable once”.
In 2019, the metallurgical sector represented more than 20 billion CFP (167 million euros) in wages for Caledonians and more than 8 billion CFP (66 million euros) in social contributions.
The creation of an extraction royalty and an export tax applicable from January 1st 2021 have also been enacted and will be defined by the end of the year. The mining royalty relates to minerals extracted, exported or processed locally and will be paid to mining municipalities and provinces.
The export tax will be levied and returned to the Nickel Fund, pending the creation of a Fund for future generations.
The President of the Government also mentioned that it was: “A historic first step, which had been raised for a long time. These texts, which must now be submitted to the Congress, will enable us to take a fundamental step by laying down the general framework for New Caledonia's mining strategy.” Congress will have to amend the mining code according to which ore must be processed in the territory.