Transcript
Walter Zweifel: SLN, which owns several mines across New Caledonia as well as the huge smelter in Noumea, wants to tap into a new ore deposit it has had at Kouaoua on the east coast. To do that it began cutting trees which enraged dozens of young people who blocked access to the area. This happened after SLN had been increasingly frustrated by sabotage at its existing operation, with fires being lit to damage the conveyor belt. This has happened with increasing frequency and prompted SLN itself to shut the site a couple of weeks ago.
Johnny Blades: What are the protesters' claims?
WZ: They have said they want to protect the endemic oak trees but SLN has issued a statement pointing out that the mine expansion only affects a small percentage of the trees in the area.
JB: Who has consented to the expanded mining activity?
WZ: SLN says it has had the approval of the local leaders which in turn has created a rift between them and the young protesters. So attempts to resolve the dispute involved a mediator who tried to at first get the local people to discuss their grievances. The provincial government had originally given the go-ahead for the SLN project. But in view of the strife, the provincial government asked for a halt to the new mining effort to prevent a serious situation from deteriorating. It has to be noted that there has been no attempt to use force.
JB: So where is SLN in all of this?
WZ: SLN was disturbed by the action of the northern province and accused it of putting SLN's survival at risk. This triggered a rebuke from the president of the northern province who said SLN was now the victim of its inability to take into account the people near and around the mining site. The relationship is complex. SLN is the main employer in Kouaoua but the sabotage suggests it has its detractors.
JB: What's happened to the workers at Kouaoua?
WZ: Most of them have been redeployed at other SLN sites but just over 60 of them have applied for unemployment benefits. Last week, some unionised SLN employees went on strike briefly because they are worried that Kouaoua might not reopen and affect nickel production downstream. The union said the protesters' claims are legitimate and accused SLN of being haughty in how it was dealing with the dispute.
JB: How can SLN cope?
WZ: It's in a difficult situation because the price of nickel is low. Plans are afoot to lower productions costs with a restructure. The company is being helped with huge loans from France because SLN is simply the most central enterprise in New Caledonia. The company, dubbed 'The Old Lady', is viewed as being in the category of too-big to fail. It's been suggested that its collapse would lead to a social explosion.
