SA company eyes New Caledonia nickel mining plant

Sibaneye-Stillwater considers refining plant to serve Asian demand

Stillwater Mining, which owns 50% of Sibaneye, is considering building a refinery in New Caledonia to process the ore

South African mining company Sibaneye-Stillwater is considering building a nickel processing plant in New Caledonia to meet the growing demand for the metal from Asia.

Stillwater Mining, which owns 50% of Sibaneye, is considering building a refinery in New Caledonia to process the ore. The plant would produce nickel matte, an intermediate product that can be further refined into pure nickel.

New Caledonia is the world's fourth-largest producer of nickel, and its ore is considered to be of high quality. The country is also located close to Asia, which is the world's largest consumer of nickel.

The proposed plant would have a capacity of 60,000 tonnes of nickel matte per year. The plant would be built in two phases, with the first phase expected to be completed in 2025. The second phase would be completed in 2027.

The total cost of the project is estimated to be $2.2 billion. Stillwater Mining has secured $1 billion in financing for the project, and it is currently in talks with potential partners to raise the remaining funds.

The plant would create 500 jobs during construction and 250 permanent jobs once operational. The plant would also boost the economy of New Caledonia, which is heavily dependent on mining.

The proposed plant has been welcomed by the New Caledonian government, which is keen to attract investment in the mining sector. The government has offered Sibaneye-Stillwater a range of incentives, including a tax break and a grant to cover the cost of infrastructure.

The plant is still in the early stages of planning, and it is not yet clear whether it will be built. However, the project is a sign of the growing interest in New Caledonia's nickel resources.