Two Bidders Emerge for Glencore’s Stake in New Caledonia’s Koniambo Nickel

Two potential buyers have submitted offers for Glencore's 49% stake in the struggling New Caledonian nickel producer Koniambo Nickel SAS (KNS), the company announced. The bids follow site visits conducted by the interested parties between late October and early December 2024. KNS President Alexandre Rousseau confirmed that shareholder evaluations of the proposals are underway but declined to provide further details.

KNS, part of New Caledonia's loss-making nickel industry, halted operations in March 2024 after Glencore decided to exit its investment. The company subsequently shut down its furnaces in August after failing to secure a buyer within the six-month timeframe set by Glencore. Despite this setback, negotiations with interested buyers have continued.

Glencore has not commented on the bidding process. The remaining 51% stake in KNS is held by SMSP, the mining investment arm of New Caledonia's northern province, which has not publicly responded to the ongoing sale process.

New Caledonia's nickel sector has long struggled with high operational costs, and its challenges were further compounded by riots in May 2024 over electoral reforms that angered the indigenous Kanak population. The unrest significantly disrupted mining operations across the region.

Elsewhere in New Caledonia, Prony Resources resumed production in December after a seven-month halt triggered by the unrest. Prony is also seeking new investment partners to replace minority shareholders, including commodity trader Trafigura. South Africa’s Sibanye-Stillwater previously explored Prony as a potential supplier of battery-grade nickel but ruled out any acquisition.

Meanwhile, Societe Le Nickel, owned by French mining group Eramet, continues to operate at reduced capacity due to access issues at some of its mining sites.