French Minister for Overseas Manuel Valls left New Caledonia at the weekend after a one-week stay which was marked by the resumption of inclusive political talks on the French territory’s future.

He has now submitted a “synthetical” working document to be discussed further and promised he would return later this month.

During his week-long visit, Valls had taken time to meet New Caledonia’s main stakeholders, including political, economic, education, health, and civil society leaders.

He has confirmed France’s main pillars for its assistance to New Caledonia, nine months after deadly and destructive riots broke out, leaving 14 dead, several hundred businesses destroyed, and thousands of job losses for a total estimated damage of 2.2 billion euros (NZ$4 billion).

The French aid confirmed so far mainly consisted of a loan of up to 1 billion euros (NZ$1.8 billion) as well as grants to rebuild all damaged schools and some public buildings.

Valls also announced French funding to pay unemployment benefits (which were to expire at the end of this month) were now to be extended until the end of June.

However, the main feature of his stay, widely regarded as the major achievement, was to manage to gather all political tendencies (both pro-independence and those in favour of New Caledonia remaining a part of France) around the same table.

The initial talks were first held at New Caledonia’s Congress on February 24.

Two days later, talks resumed at the French High Commission between Wednesday and Friday last week, in the form of “tripartite” discussions between pro-France, pro-independence local parties and the French State.

As some, especially the pro-independence umbrella FLNKS (Kanak and Socialist National Liberation Front), insisted that those sessions were “discussions”, not “negotiations”, there was a general feeling that all participants now seemed to recognise the virtues of the exchanges and that they had at least managed to openly and frankly confront their respective views.

Valls, who shared a feeling of relative success in view of what he described as a sense of “historic responsibility” from political stakeholders, even extended his stay by 24 hours.

Speaking at the weekend, he said he had now left all parties with a document that was now supposed to synthesise all views expressed and the main items remaining to be further discussed.

A cautiously hopeful Valls said views would continue to be exchanged, sometimes by video conference.

Taking part in the same visit last week was Eric Thiers, a special adviser to French Prime Minister François Bayrou.

Valls also stressed he would return to New Caledonia sometime later this month, maybe March 22-23, depending on how talks and remote exchanges were going to evolve.

In the meantime, the shared document would be subjected to many amendments and suggestions in order to take the shape of a fit-enough basis for a compromise acceptable by all.

The work-in-progress document details a wide range of subjects, such as self-determination, the relationship with France, the transfer of powers, who would be in charge of international relations, independence, a future system of governance (including the organisation of the three provinces), the electoral roll for local elections, the notion of citizenship (with a proposed system of “points-based” accession system), all these under the generic notion of “shared destiny”.

There was also a form of consensus on the fact that if a future text was to be submitted to popular approval by way of a referendum, it should not be based on a binary “yes” or “no” alternative, but on a comprehensive, wide-ranging “project”.

On each of those topics, the draft takes into account the different and sometimes opposing views expressed and enumerates a number of possible options and scenarios.

Based on this draft working document, the next round of talks would lead to a new agreement that is supposed to replace and offer a continuation to the ageing Nouméa Accord, signed in 1998 and install a new roadmap for New Caledonia’s future.

As part of discussions, another topic was the future of New Caledonia’s great council of chiefs, the Customary Senate, and possible changes from its until-now consultative status to a more executive role to turn New Caledonia’s legislative system from a Congress-only system to a bicameral one (Congress-Parliament and a chiefly Senate).

Struggling nickel mining industry
The very sensitive question of New Caledonia’s nickel mining industry was also discussed, as the crucial industry, a very significant pillar of the economy, is undergoing its worst crisis.

Since August 2024, one of its three factories and smelters, Koniambo (KNS) in the north of the main island has been mothballed and is still up for sale after its majority stakeholder, Anglo-Swiss Glencore, decided to withdraw after more than a decade of losses (more than 13 billion euros — NZ$24 billion).

Another nickel-producing unit, in the South, Prony, is currently engaged in negotiations with potential investment companies, one South African, one from  the United Arab Emirates and the other Indian.

New Caledonia’s historic nickel miner, Société le Nickel (SLN, a subsidiary of French giant Eramet), is still facing major hurdles to resume operations as it struggles to regain access to its mining sites.

The situation was compounded by a changing competition pattern on the world scale, New Caledonia’s production prices being too high and Indonesia now clearly emerging as a world leader, producing much cheaper first-class nickel and in greater quantities.

‘A new nickel strategy is needed’, Valls says
While political parties involved in the talks (all parties represented at the Congress) remained tight-lipped and media-elusive throughout last week, they recognised a spirit of “constructive talks” with a shared goal of “listening to each other”.

However,  the views remain radically opposed, even irreconcilable — pro-independence supporters’ most clear-cut position (notably that from the Union Calédonienne) consists of a demand for a quick, full independence, with a “Kanaky Accord” to be signed this year, to be followed by a five-year “transition” period.

On the pro-France side, one of the main bones of contention defended by the two main parties (Les Loyalistes and Rassemblement-LR) is to affirm that their determination to maintain New Caledonia as a part of France has been confirmed by three referenda (in 2018, 2020 and 2021) on self-determination.

Pro-independence parties argue, however, that the third and last referendum, in December 2021, was boycotted by the pro-independence movement and that it was not legitimate, even though it was ruled by the courts as valid.

They are also advocating for significant changes to be made in the way the three provinces are managed, a system described as “internal federalism” but decried by opponents as a form of separatism.

In the pro-France camp, the Calédonie Ensemble party holds relatively more open views.

In between are the more moderate pro-independence parties, PALIKA and UMP, which favour of a future status revolving around the notion of “independence in association with France”.

‘At least no one slammed the door’
“At least no one slammed the door and that, already, is a good thing,” said pro-France leader and French MP Nicolas Metzdorf.

“We’re still a long way away from a political compromise, but we have stopped moving further away from it,” he added, giving credit to Vall’s approach.

On his part, Valls stressed that he did not want to rush things in order to “maintain the thread” of talks, but that provincial elections were scheduled to take place no later than 30 October 2025.

“I don’t want to force things, I don’t want to break the thread . . . sometimes, we wanted to rush things, and that’s why it didn’t work,” he elaborated, in a direct reference to numerous and unsuccessful attempts by previous French governments, since 2022, to kick-start the comprehensive talks.

“Some work will be done by video conference. I will always take my responsibilities, because we have to move forward”, Valls told public broadcaster NC la 1ère.

He said France would then return with its proposals and offers.

“And we will take our responsibilities. The debate cannot last for months and months. We respect everyone, but we have to move forward. There is no deadline, but we all know that there are provincial elections.”

Those elections — initially scheduled in May 2024 and then in December 2024 — have already been postponed twice.

They are supposed to elect the members of New Caledonia’s three provinces (North, South and Loyalty Islands), which in turn makes up the territory’s Congress and the proportional makeup of the government and election of President.

All parties involved will now to consult with their respective supporters to get their go-ahead and a mandate to embark on full negotiations.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

A South African company is reported to be the most probable bidder for shares in New Caledonia’s Prony Resources.

As part of an already advanced takeover of the ailing southern plant of Prony Resources, the most probable bidder is reported to be South African group Sibaneye-Stillwater, local new media report.

Just like the other two major mining plants and smelters in New Caledonia, Prony Resources is facing acute hardships due to the emergence of Indonesia as a major player on the world market, compounded with New Caledonia’s violent unrest that broke out in May.

Prony Resources has been trying to find a possible company to take over the shares held by Swiss trader Trafigura (19 percent).

The process was recently described as very favourable to a “seriously interested” buyer.

Citing reliable sources, daily newspaper Les Nouvelles Calédoniennes yesterday named South Africa’s Sibanye-Stillwater.

The Johannesburg-based entity is a significant player on the minerals world market (including nickel, platinum and palladium) and owns, amongst other assets, a hydro-metallurgic processing plant in Sandouville (near Le Havre, western France) with a production capacity of 12,000 tonnes per year of high-grade nickel which it bought in February 2022 from French mining giant Eramet for 85 million euros (NZ$153 million).

The ultimate goal would be, for the South African player, to become a leader on the production market for innovative electric vehicles batteries, especially on the European market.

Southern Province President Sonia Backès had already hinted last week that one buyer had now been found and that one bidder had successfully reached advanced stages in the due diligence process.

If the deal eventuated, the new entity would take over the shares held by Swiss trader Trafigura (19 percent) and another block of shares held by the Southern Province to reach a total of 74 percent participation in Prony Resources stock, as part of a major restructuration of the company’s capital.

Prony Resources, in full operation mode, employs about 1300 staff.

Another 1700 are employed indirectly through sub-contractors.

It has paused its production to retain only up to 300 staff, in safety and maintenance mode, partly due to New Caledonia’s current unrest.

New Caledonian consortium’s surprise bid for mothballed Northern plant
Meanwhile, a local consortium of New Caledonian investors is reported to have made an 11-hour offer to take over and restart activity for the now mothballed Koniambo (KNS) nickel plant.

The plant’s furnaces were placed in “cold care and maintenance” mode at the end of August, six months after major shareholder Anglo-Swiss Glencore announced it wanted to withdraw and sell the 49 percent shares it has in the project.

This caused close to 1200 job losses and further 600 among sub-contractors.

Other bidders still interested
KNS claimed at least three foreign investors were still interested at this stage, but none of these have so far materialised.

Talks were however reported to continue behind the scenes, with interested parties even ready to travel and visit on-site, KNS Vice-President and spokesman Alexandre Rousseau told Reuters news agency earlier this month.

‘Okelani Group One’
But a so-called “Okelani Group One” (OGO), made up of three local partners, said their offer could revive the project with a different business model.

They say they have made an offer to KNS’s majority shareholder SMSP (Société Minière du Sud Pacifique, New Caledonia’s Northern province financial arm).

OGO president Florent Tavernier told public broadcaster NC la 1ère much depended on what Glencore intended to do with the staggering debt of some US$13.7 billion which KNS had accumulated over the past 10 years.

Another OGO partner, Gilles Hernandez, explained: “We would be targeting a niche market of very high quality nickel used in aeronautics and edge-cutting technologies, especially in Europe, where nickel is now classified as ‘strategic metal’.”

Although KNS was designed to produce 60,000 tonnes of nickel a year, that target was never reached.

OGO said it would only aim for 15,000 tonnes per year and would only re-employ 400 of the 1200 laid-off staff.

New Caledonia’s third nickel plant, owned by historic Société Le Nickel (SLN, a subsidiary of French mining giant Eramet), which is also facing major hardships for the same reasons, is said to currently operate at minimal capacity.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz