Prony Resources New Caledonia will restart operations at its Goro mine and battery-grade nickel production plant, located in the southern part of New Caledonia, after a six-month suspension caused by local riots. This marks a key milestone for Prony Resources, one of the three major nickel producers in the French territory, as reported by Bloomberg.
The Goro mine is capable of producing 57,000 tonnes per year (tpa) of nickel and 5,000 tpa of cobalt. Nickel is extracted from laterite ore through an open-pit mining process, then processed in a feed preparation plant and treated in a high-pressure acid leach facility.
The mining industry in New Caledonia faced severe challenges last year, driven by falling nickel prices and intensified production in Indonesia. In August 2023, a French government report warned that the sector required urgent refinancing and restructuring to support the EU’s critical raw materials independence. The report also noted the long-term poor performance of major French metals corporations, including Prony Resources.
The economic situation worsened this year with civil unrest in New Caledonia, which resulted in significant damage to mining operations and disruptions to plant activities. In response, the French government has stepped in to stabilize the industry, providing subsidies and investments in renewable energy.
To support Prony Resources through these turbulent times, the French government allocated $150 million (€142.12 million) in February 2023, helping to prevent the company’s collapse and ensuring it can continue operations until 2026. As part of its recovery plan, Prony Resources is aiming for a monthly production target of 3,500 tonnes of nickel and cobalt chemicals, which are essential components in electric vehicle batteries. However, the company has not yet confirmed a specific date for the restart of production.
Additionally, South African precious metals producer Sibanye-Stillwater is considering Prony Resources as a potential supplier of nickel for its battery-grade material production at the Sandouville plant in France.
