Japan yesterday began the decades-long release of more than one million tonnes of treated nuclear wastewater into the Pacific Ocean in defiance of protests across the region.

Protesters in Auckland decried New Zealand’s “convenient silence” on Japan’s nuclear waste release at a rally.

Among the crowd was a young Pacific advocate who called on the New Zealand government to oppose the release.

“We’re calling for New Zealand to release a statement opposing the dump and then come up with a regional consensus that the leaders’ meeting [Pacific Islands Forum Summit] in November can accept,” said codirector Marco de Jong of Te Kuaka New Zealand Alternative.

At the Auckland protest on Friday morning, de Jong said New Zealand was taking the easy way out.

He said the government’s silence was convenient and left Pacific nations to fight on their own.

“The ocean is suffering, climate change is accelerating. And the Pacific is being rendered as a sacrifice zone, a military buffer and climate disaster area,” de Jong said.

‘Nuclear legacies’
“Things like the nuclear waste dump compound harms. There are nuclear legacies that have not been addressed. And this is part of a broader story.”

Aaron Lee, an Aucklander originally from South Korea, said the issue was causing tension back home.

“It should not be happening,” Lee said.

He said if it really was “clean water” and “clean treated wastewater”, why could not Japan use it in its agricultural lands?

Lee said protesters had been fiercely opposing the release in South Korea.

Auckland University sociology lecturer Dr Karly Burch told the protest: “it’s really important to put it in the context of nuclear imperialism and nuclear colonialism.”

“It involves targeting indigenous peoples and their lands and waters to sustain the nuclear production process,” she said.

Legal thresholds
The International Atomic Energy Agency (IAEA) standards were basically legal thresholds or standards, Dr Burch said.

“So they’re saying up to this amount, it’s legally allowable to pollute, it’s legally allowable to have bodies exposed to a certain amount of ionising radiation.”

“And so it’s really important that when we hear these things, when we hear these approvals, we’re thinking of them in legal terms, because that’s really what this is all about.”

She said the IAEA’s legal standards were “extremely narrow” in their focus.

The IAEA backs it’s standards the UN nuclear watchdog boss told RNZ in July 2023.

Despite assurances, protesters in and around the Pacific Ocean have hit the streets.

In Suva, hundreds of protesters gathered and chanted: “If it’s safe, put it in Japan.”

“Pacific Islands Forum, United Nations, We are the Pacific, We are angry,” protesters chanted.

And at least 16 protesters in Seoul were arrested as they attempted to enter the Japanese embassy.

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

☢️ Fukushima protest march | 25/8/23#fyp #fiji #FukushimaNuclearWasteWater pic.twitter.com/zHvjem9wTD

— fijivillage (@fijivillage) August 24, 2023

Article by AsiaPacificReport.nz

As Pacific communities protest the Japanese government’s plan to dump more than a million tonnes of radioactive waste water from the Fukushima nuclear plant into the Pacific Ocean, Australian anti-nuclear activists are highlighting the complicity of Australian uranium exporting companies.

While the Fukushima Daiichi power station operator, Tokyo Electric Power Company (TEPCO), claims that the water will be treated to reduce radioactive content, anti-nuclear activists have no faith in TEPCO’s assurances.

The Candlelight Alliance, a Korean community group in Sydney, is organising a protest outside the Japanese consulate this Saturday.

Spokersperson Sihyun Paik told Green Left: “We have a great fear that it may already be too late to stop Japan’s release of radioactively contaminated waste water into our largest ocean, an action by which every Pacific Rim nation will be impacted.

“There are serious, global ramifications,” he said. “It will directly endanger the marine life with which it comes into contact, as well as devastate the livelihoods of those reliant on such marine life, such as fisherfolk.

“All living organisms will be implicitly affected, whether it is the unwitting consumer of contaminated produce, or even beachgoers.

“The danger posed by the plan cannot be contained within just the Northeast Asia region. In two to three years, it will eventually reach and contaminate all ocean waters to certain, yet significant degrees according to scientists.

Korean fishery victims
“The local Korean fishery industry is the first commercial victim of the Fukushima nuclear disaster and it raised deep concerns to the Korean government immediately after the explosion of the nuclear reactors.

“This was in conjunction with Korea’s progressive action groups during the term of the previous Moon Jae-In administration.

“However, since the current administration (2022), the voice of protest has been extinguished at the government level, invariably raising suspicion of possible under the table dealings between Japan’s Kishida government and current Korean President Yoon [Suk Yeol] during the latter’s recent visit to Japan.”

Epeli Lesuma, from the Fiji-based Pacific Network on Globalisation, told Green Left that “for Pacific people the Ocean represents more than just a vast blue expanse that Japan can just use as a dumpsite.

“Our Ocean represents the economic, spiritual and cultural heart of Pacific countries.

“Pacific people know all too well the cost of nuclear testing and dumping. The Pacific was used as a nuclear test site by the UK, France and the USA who carried out a total of 315 tests on Christmas Island in Kiribati, Australia, Māohi Nui or French Polynesia and the Marshall Islands.

“These nuclear legacies have cost us countless lives and continue to impact the health and well-being of our people; it has impacted access to our fishing grounds and land to plant crops to support our families; and it has cost us our homes, with Pacific people displaced (on Bikini and Enewetak) due to nuclear contamination.

Japan, Pacific share trauma
“Japan and the Pacific share the trauma of nuclear weapons and testing.

“So it comes as a deep disappointment to us that the Japanese government would consider actions that threaten not only Pacific people and our Ocean but the health and well-being of all the planet’s oceans and the people who depend upon them.

“The Pacific Ocean also contains the largest tuna fish stocks which are a source of economic revenue for our countries. The Japanese government’s plans to dump its nuclear wastewater into our Ocean pose a direct threat to the economic prosperity of our countries and in turn our developmental aspirations as well as being a fundamental breach of Pacific people’s rights to a clean and healthy sustainable environment.”

Australian anti-nuclear activist Nat Lowrey delivered a statement of solidarity from the Australian Nuclear Free Alliance when she visited affected local communities in Fukushima in March.

The statement acknowledged that uranium from the Ranger and Olympic Dam mines was in TEPCO’s Fukushima reactors when the meltdowns, explosions and fires took place in March 2011.

The ANFA statement said that “Australian governments, and mining companies BHP and Rio Tinto, are partly responsible for the death and destruction resulting from the Fukushima disaster. They knew about the corruption in Japan’s nuclear industry but kept supplying uranium.”

Lowrey said that since it was Australian uranium that fuelled the Fukushima Daiichi nuclear power plant, “the Australian government has a responsibility to stand with local communities in Fukushima as well as communities in Japan, Korea, China and Pacific Island states in calling on the Japanese government not to dump radioactive wastewater into the Pacific Ocean”.

‘Fundamental self-determination right’
“We must support Pacific peoples’ fundamental right to their sovereignty and self-determination against Japan’s nuclear colonialism.

“If Japan is to go ahead with the dumping of radioactive waste, Australia should play a lead role in taking a case to the International Tribunal for the Law of the Sea against Japan.”

Paik said no Australian government had taken serious action since the Fukushima disaster.

“Despite the Japanese government’s decision to release nuclear contaminated water into the ocean, no official statement or comment has been made by the [Anthony] Albanese government.

“We did not expect any form of government level protest on this issue due to conflicts of interest with Australia’s member status in the Quad partnership which is a key pillar in Australia’s foreign policy, and an influential determinant of our stance on nuclear energy.”

When the G7 met in Tokyo, the Japanese government urged the summit to approve the planned radioactive water release.

Tanaka Shigeru, from the Pacific Asia Resource Centre in Japan, said: “Japan did not get the approval by the G7 as it had hoped, but it stopped at saying the G7 will adhere to the conclusion of the International Atomic Energy Agency (IAEA).

‘IAEA approves release’
“The IAEA is of course approving of the release, so it is a way for them to say they have approved without explicitly saying so.”

Shigeru said that despite a three-year propaganda campaign over Fukushima, most people polled in Japan in April said that “the government has not done enough to garner the understanding of the public”.

Only 6.5 percent of those polled believe that the Japanese government has done enough.

Yet it has “done enough to keep people from the streets”, Shigeru said.

“While there are, of course, people who are still continuing the struggle, I must say the movement has peaked already after what has been a fervent three-year struggle.”

Japanese opponents of the radioactive water release, including fisherfolk, have been fighting through every administrative and legal step but now “there are no more domestic hurdles that the Japanese government needs to clear in order to begin the dumping”, Shigeru said.

“The opposition parties have been so minimised in Japan that there is very little realistic means to challenge the situation except for maybe international pressure. That is really the only thing standing in the way of the dumping.

Ambassador propaganda
“So Japan has been taking ambassadors from the Pacific nations on lucrative paid-for trips to Fukushima to spread the propaganda that the dumping will be safe.”

Lesuma confirmed the impact on swaying some Pacific Island governments, such as Papua New Guinea and the Federated States of Micronesia.

“Pacific Islands Forum member states have been some of the most vocal opponents at the international level of the Japanese government’s plans to dump their nuclear wastewater into the Pacific Ocean,” he said.

“The PIF leaders had appointed an Independent Panel of Experts who have engaged with TEPCO scientists and the IAEA to provide advice to Pacific governments on the wastewater disposal plans … the Panel has concluded unanimously that Japan should not release nuclear wastewater into the Pacific Ocean and should explore other alternatives.

“The Fiji government has been one such Pacific government consistent in coming out strongly in opposing Japan’s plans.

“The PNG Fisheries Minister, Jelta Wong, has also been vocal and consistent in expressing his disapproval of the same, going as far as saying that the nuclear wastewater discharge would create a ‘Pacific Chernobyl’ with the potential to cause harm to Pacific people for generations to come.”

Peter Boyle is a Green Left activist and contributing writer. Republished with permission.

Article by AsiaPacificReport.nz

A woman has been arrested for the alleged murder of two young children whose remains were discovered in suitcases in Manurewa, South Auckland, last month.

New Zealand police can now confirm that a 42-year-old woman has been arrested in South Korea.

Counties Manukau CIB detective inspector Tofilau Fa’ amanuia Vaaelua said South Korean authorities arrested the woman today on a Korean arrest warrant on two charges of murder relating to the two young victims.

The arrest warrant was issued by the Korean courts as a result of a request by NZ police for an arrest warrant under the extradition treaty between New Zealand and the Republic of Korea.

He said NZ police had applied to have her extradited back to New Zealand to face the charges and had requested she remain in custody while awaiting the completion of the extradition process.

“To have someone in custody overseas within such a short period of time has all been down to the assistance of the Korean authorities and the coordination by our NZ Police Interpol staff,” he said.

There were a number of enquiries to be completed both in New Zealand and overseas, he added.

Police said the children, believed to be aged between five and 10 years old, may have been hidden in the suitcases in an Auckland storage yard for several years.

The bodies were discovered on 11 August 2022 after a Clendon Park family won an auction for abandoned goods in a storage unit, without realising what was inside.

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

Article by AsiaPacificReport.nz

A new Aotearoa New Zealand book focusing on activists and their causes against militarism and for social struggles and climate justice across the Asia-Pacific is being launched in Wellington today.

Peace Action: Struggles for a decolonised and demilitarised Oceania and East Asia, edited by Wellington-based activist Valerie Morse, is the first book published by Left of the Equator Press.

“This book highlights the role of militarism as an ongoing colonial force,” says Morse.

“It is a collection of stories about activists, their organising and their causes, and the interconnections between social struggles separated by the vast expanse of Te Moana-Nui-A-Kiwa.”

It includes chapters on the Doctrine of Discovery (Tina Ngata), on protecting Ihumātao (Pania Newton, Qiane Matata-Sipu mā), on anti-militarist organising in South Korea, on campaigning against US military training in Hawai’i and Japan, on French colonialism in Mā’ohi Nui and Kanaky, about Korean peace movements in Aotearoa and Australia, about Indonesia’s occupation of West Papua, on feminist resistance to war in so-called Australia, on NZ’s history of Chinese-Māori solidarity, and on peace gardening at Parihaka.

“The increasing military build up across the Pacific has come into sharp focus this year,” said Morse.

“Having any influence over issues of war and international affairs can feel impossible, but grassroots movements for decolonisation and peace are the heart of countering this spiralling militarism and addressing the region’s most pressing issues, including climate justice.”

She says she was inspired to do the book from learning about the kinds of organising across the Pacific rim.

“I wanted to share that learning in order to inspire and inform others.”

The book launch was an “awesome way to celebrate solidarity and connection with each other” and to build a collective knowledge for change.

It is being hosted at Trades Hall on Vivian Street in Wellington at 5.30pm today.

Trade Unions based at the hall were deeply involved in the Nuclear-Free and Independent Pacific (NFIP) movement.

More information: leftequator@gmail.com

Article by AsiaPacificReport.nz

Former prime ministers, an opposition leader, and an ex-central bank governor have added their voices to a growing chorus of concerns about the Fiji government’s “close association” with a Korean doomsday Christian cult that has reportedly benefited from millions of dollars from a state-backed institution.

Award-winning investigative journalism organisations, the Organised Crime and Corruption Reporting Project (OCCRP) and the Korean Centre for Investigative Journalists (KCIJ), published a major exposé this week, that zeros in on the rapid expansion of the controversial Grace Road Church business empire through Prime Minister Voreqe  Bainimarama’s FijiFirst government’s help.

The two groups have revealed that Grace Road, whose leader Ok-joo Shin is in a Korean prison for “assault, child abuse, and imprisoning church members” and whose top executives remain under international police warrants, has received at least FJ$8.5 million (NZ$6.1m) in loans from the Fiji Development Bank (FDB) since 2015.

The FDB is a government-backed institution established to develop the country’s economy by providing finance to local small and medium agricultural enterprises. But Grace Road, which established as a foreign investor in 2014, started getting FDB loans just a year after it began operations.

According to the OCCRP-KCIJ, that money has helped the sect propel itself into a major entity in the Fijian economy, spreading its footprint throughout the main island of Viti Levu, with plans to develop further.

“The sect now operates the country’s largest chain of restaurants, controls roughly 400 hectares of farmland, owns eight supermarkets and mini marts, and runs five Mobil petrol stations. Its businesses also provide services such as dentistry, events catering, heavy construction, and Korean beauty treatments,” the two investigative groups report.

‘Red carpet treatment’
The investigations also uncovered Fijian police’s failure to investigate and charge the top leaders of the sect who were arrested four years ago on allegations of human rights abuses of its followers, but were released soon after when “a local court temporarily blocked their deportation”.

“The South Korean police said that the Fijian police had released the Grace Road members after a high-level meeting that included Fiji’s late immigration chief, the prime minister’s personal private secretary, the solicitor-general, and the country’s top prosecutor,” according to OCCRP-KJIC.

OCCRP’s Pacific editor, Aubrey Belford, told RNZ Pacific the core issue with Grace Road in Fiji was the perception it had been given the red carpet treatment by the government.

“They showed up in the country less than 10 years ago and in that time they have managed to build what is now one of the biggest business empires in the country,” Belford said.

“We counted 54 business establishments currently running in the country — 55 If you count the huge farm they have in Navua. They’re really everywhere.”

He said the OCCRP was able to uncover “that no one knew” that FDB provided Grace Road millions of dollars in loans to finance its business aspirations.

Belford said the police investigation into the alleged abuses of its members in Fiji had been ongoing for several years but had “gone nowhere” despite Fijian police officers travelling to Seoul to collect victim statements from key witnesses.

Former church member Yoon-jae Lee with two Fiji police officers. Image: Yoon-jae Lee

Government dismisses claims
“There is no conspiracy or cover-up here,” Fiji’s Director of Public Prosecution Christopher Pryde told OCCRP-KCIJ.

OCCRP-KCIJ said the South Korean Embassy in Suva declined to be interviewed, citing “the sensitive issues of the matter on Grace Road Church and ongoing Korean-Fijian law enforcement cooperation”.

Fijian authorities have remained quiet about the claims made in the report, but Attorney-General and Economy Minister Aiyaz Sayed-Kahiyum deflected media questions on Tuesday, telling reporters the investigations were “done by some organisation who we have never heard about”.

RNZ Pacific has contacted Grace Road for comment.

But with an election looming, Fijian political leaders are calling for Bainimarama and Sayed-Khaiyum to “come clean” about their dealings with the Korean group.

Former prime ministers Sitiveni Rabuka and Mahendra Chaudhry, who lead the People’s Alliance and the Labour Party respectively; the leader of the major opposition SODELPA, Viliame Gavoka; as well as former Reserve Bank of Fiji Governor Savenaca Narube are all calling for an official inquiry.

Rabuka has labelled the close links between the government and Grace Road a “disgrace”.

“It is a disgrace that this foreign sect whose founder is serving jail time in Korea for abusing its adherents has been given the red carpet treatment by the FijiFirst government,” Rabuka said.

“What equity did they bring as part of the deals to justify the $8.5m lending?” he asked, adding: “It seems that this government will willingly leave Fijians behind for the sake of assisting their own rich foreign friends.”

Rabuka said his People’s Alliance would launch an investigation into the operations of Grace Road Church if the alliance formed a government after the 2022 election.

Chaudhry said he hoped the findings uncovered by OCCRP would “bring out the truth”.

“Many here have questioned whether the Fiji police investigations into the complaints against the group have been hamstrung by political interference,” Chaudhry said.

“It is believed that a number of powerful people may have personally benefited from the activities of the Grace Road group in return for favours extended to it.”

Chaudhry said the Fiji police investigation was “just a joke”.

“We have raised this issue many times before but without results, because the group appears to have the backing of the government top brass who have not hesitated to defend them even in Parliament,” the Labour leader added.

‘Gravely concerned’
SODELPA’s Gavoka said he was “gravely concerned with revelations” of the investigations.

“There have been unspoken concerns among our people with respect to the fast-growing expansion of the Grace Road business in Fiji, while many are aware of past reports alleging gross abuse of human rights and workers’ rights,” he said.

“SODELPA demands the FijiFirst Government and local authorities act and come clean; and put all these to an end.”

Gavoka is calling on Bainimarama’s government to “declare its interest on Grace Road”.

“We cannot allow such incidences on allegations of criminal conduct on gross violations of human and workers’ rights on our land.”

Former Reserve Bank of Fiji governor and leader of the Unity Fiji party Narube said they had “watched with great concern” the friendly relations between the Bainimarama government and the sect.

“We have seen the rapid expansion of Grace Road into sectors that are reserved for the Fiji citizens and companies,” Narube said.

“We have been informed of the rapid processing of their business applications compared to others. We have seen many foreign workers in jobs that would be easily filled by locals. We are concerned about the allegations of physical and mental abuses within the sect.”

With a general election looming, Narube said a Unity Fiji government would apply the laws fairly and uniformly.

“A Unity Fiji government would therefore investigate the ties between the government and Grace Road to clear all the allegations and perceptions.”

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

Article by AsiaPacificReport.nz

A View from Afar – In this podcast, political scientist Paul Buchanan and Selwyn Manning bring you a programme in three parts.

First, they provide a brief roundup of Russia’s Victory Day on May 9th and what to make of Russia’s president Vladimir Putin’s speech.

PLUS, they evaluate a raft of election results that have occurred around the world including in: Philippines / HongKong / Sinn Fein’s win in Northern Ireland, and Macron’s re-election as president of France.

And then Paul and Selwyn analyse the Solomon Islands China security deal, and consider why this issue continues to raise concerns amongst Australia, New Zealand and the USA, question whether such concerns are hypocritical, and what real impact China’s strategy will have on the Quad and AUKUS security blocs.

Join Paul and Selwyn for this LIVE recording of this podcast while they consider these big issues, and remember any comments you make while live can be included in this programme.

You can comment on this debate by clicking on one of these social media channels and interacting in the social media’s comment area. Here are the links:

• Facebook.com/selwyn.manning
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The MIL Network’s podcast A View from Afar was Nominated as a Top  Defence Security Podcast by Threat.Technology – a London-based cyber security news publication.

Threat.Technology placed A View from Afar at 9th in its 20 Best Defence Security Podcasts of 2021 category. You can follow A View from Afar via our affiliate syndicators.

Australia is accused of using “diplomatic strong-arm tactics” to water down outcomes in Pacific climate negotiations and “buy silence” on climate change, a new report has revealed.

Greenpeace Australia Pacific’s report, Australia: Pacific Bully and International Outcast, reveals that the Australian government uses “bullying tactics” in regional negotiations on climate change, according to former Pacific Island leaders interviewed as part of the study.

The leaders include former Kiribati President Anote Tong and former Prime Minister of Tuvalu Bikenibeu Paeniu.

Australia’s aid to the Pacific has been “greenwashed”, with some of the largest and most expensive “climate adaptation” projects having no link to climate change or contributing to increase the climate resilience of Pacific peoples.

The Australian government’s climate position harms its international relations and economy with Australia’s export markets for coal and gas shrinking as major trading partners such as Japan and South Korea commit to net-zero emissions, says the report, published coinciding with the COP26 climate summit in Glasgow.

The report draws on dozens of interviews with present and former Pacific leaders, Australian diplomats and academics to expose the hardline tactics used by Australia to thwart stronger regional action on climate change and to shift focus away from Australia’s responsibility to reduce greenhouse gas emissions.

The report also uncovers the greenwashing of Australian aid in the Pacific, finding that millions of aid dollars have been given to “climate adaptation” projects that do not have any link to climate change.

Australian standing damaged
Greenpeace Australia Pacific researcher and international relations expert Dr Alex Edney-Browne said the investigation showed Australia’s international standing had been damaged by its climate obstruction.

“Australia has lost its once-respected position in the Pacific and now has a reputation for bullying and strong-arm diplomatic tactics to thwart regional climate action,” she said.

“Pacific Island leaders are some of the world’s strongest climate advocates, but Australia has brazenly tried to buy their silence through aid with strings attached.

“Morrison’s last-minute commitment at COP26 this week to increase regional climate finance by $500 milion, via bilateral agreements, simply won’t cut it. Given the level of greenwashing going on in Australia’s foreign aid to the Pacific as revealed in this report, there is also no guarantee that this money will go where it’s needed to increase the climate resiliency of Pacific peoples,” she said.

“Australia has a history of using bilateral aid as a way of gaining leverage over Pacific island countries. It would be nice to see Australia being a good international citizen and showing support for multilateral climate finance such as the UN’s Green Climate Fund. It refuses to do so.

“Australia must make a serious effort on climate change, which is threatening the very survival of Pacific nations. That means ruling out any new coal or gas projects, ending the billions in subsidies given to the fossil fuel industry and committing to a science-based target to cut emissions by 75 percent this decade to bring it up to speed with our regional neighbours and trading partners.”

Gareth Evans, a former Australian foreign minister, said Australia’s climate policy was already hurting the country’s diplomatic standing.

‘Reputation for decency’
“A country’s reputation for decency in these matters does really, really matter… Australia’s credibility in all sorts of ways depends on our being seen to be responsible, good international citizens and Australia is putting that reputation very much at risk on the climate front,” he said.

Anote Tong, former President of Kiribati, said Australia had not acted in the spirit of mutual respect in its dealings with the Pacific on climate change.

“I cannot read into the minds of Australian leaders but it’s always been my hope that we would treat each other with mutual respect, but I’m not sure this has always been the case,” he said.

“But we should be partners in every respect and not when it is convenient to one party but not the other, for example on climate change. We expect Australia to be stepping forward because climate change is very important for us and we’re meant to be part of this family. It had always been my expectation, my hope, that Australia would provide the leadership we desperately need on climate change.”

Dr Matt McDonald, associate professor of International Relations at University of Queensland, refers to Australia’s climate policies as a “perfect storm”, with serious repercussions for the country’s regional and international relations if these policies remain weak by comparison with similar developed countries.

Article by AsiaPacificReport.nz

Efforts by Brazilian miner Vale SA to extract itself from one of the world’s largest nickel and cobalt operations are creating deeping tensions and confusion in the French Pacific territory of New Caledonia.

On Wednesday night Vale announced a vague deal, without disclosing full financials, but by Thursday there was uncertainty as Paris officials entered a political maze around it all.

Violence broke out this week in the capital Noumea with indigenous pro-independence groups trying to take control of the mining as small bands of white settlers, some armed, supported Vale’s exit plans.

It comes soon after New Caledonia, population 286,000, held a second referendum on independence in October, narrowly voting to retain French control.

A third referendum in 2022 may yet be held.

Indigenous “Kanaks” account for 39 percent of the population.

New Caledonia has around a quarter of the world’s known nickel reserves.

Conrontation over nickel
The current confrontation involves the Goro Nickel Project, 60 km east of Noumea which commenced production in 2010 planning to produce 60,000 tonnes a year of nickel and up to 5000 tonnes of cobalt.

It has 55 million tonnes of estimated measured and indicated mineral reserves.

Vale obtained the rights as part of a 2007 US$19 billion takeover of Canadian company Inco. But it ran several years behind creating the project, worth over US$6 billion.

Start up decisions left an operation only producing around a third of its promised annual capacity. Using a difficult technology to convert ore to nickel oxides, Vale has been unable to produce preferential battery material nickel sulfate.

Nickel production at the Goro mine reached its peak 37,400 tonnes in 2017. The mine was expected to produce 31,000 tonnes this year in 2020.

The Goro project, which includes open cast mining, refining and a port, has been 95 percent owned by Vale Nouvelle-Calédonie with the balance held by the local government.

Vale’s plant is the second-largest employer in the Southern Province, with some 3500 employees and contractors.

Vale trying to get out
Vale has been attempting to get out, to the extent of simply closing the operation and walking away.

Earlier this year Australian-based zinc producer New Century said it was seeking a deal to buy but backed out after failing to raise enough cash.

Indigenous groups sought to promote a bid from Sofinor, the financial arm of New Caledonia’s Kanak-run and majority population Northern Province and its partner Korea Zinc.

While Vale had rejected the offer, it stayed political live until last week when, as violence escalated, Korea Zinc pulled out.

University of New Caledonia law professor Dr Mathias Chauchat said the situation was a mess with five areas of concern. These included a difference in treatment between how the Prony and Sofinor bids were treated and possible conflicts of interest among directors of Vale New Caledonia.

There is also “the ecological risk of a residue dam, like in Brazil”. There was also concern over the move away from exporting finished goods and the question of whether in changed New Caledonia there was to be public sector development, or not.

In early December Vale said they would only negotiate with a new group, Prony Resources, named after the local port. Prony is led by Vale’s current New Caledonia management and employees, supported by New Caledonian and French authorities.

Singaporean group
Twenty five percent of Prony’s shares are held by Trafigura Group, a Singaporean multinational commodity trading company.

On Thursday Vale said it had a “binding put option” to formalise the sale to Prony Resources. It said the new structure offered “significant domestic participation and that takes into account the aims of social and environmental responsibility….”

It would continue long standing commitments to maintain benefits for the indigenous people of New Caledonia’s Southern Province.

“All parties to this negotiation have invested a significant amount of time and effort to reach a solution for the sustainable future of (Vale),” said Mark Travers, Vale’s executive director of Base Metals.

“Vale and everyone involved in the divestment process – including the South Province of New Caledonia, the French State and (Vale) employees and management – can be proud of the fact that those efforts have yielded such a positive result.”

As a result of the deal Vale said they expect it completed by the first quarter of next year and that “a reserve of US$500 million will be reflected on Vale’s consolidated financial statements.”

The deal remains subject to the approval of New Caledonian authorities and the French state.

Noumea at a standstill
But as the maneuvering continued this month Noumea has come to much of a standstill in the wake of demonstrations and roadblocks. Mines, shops, the port and several major roads to Goro have been blocked.

The main independence group, the Kanak Socialist National Liberation Front (Front de Libération Nationale Kanake et Socialiste; FLNKS) say their fight over Goro “is a fight against multinationals who try to loot the wealth of all New Caledonians and pollute our country”.

They want the indigenous to be majority owners.

FLNKS, which controls Northern Province, has especially objected to Trafigura, saying it amounts to “plundering of the country’s resources by multinationals”.

Europe-based public affairs consultant Sebastien Goulard, a specialist on European Union-China relations and New Caledonia said the local people did not want Trafigura, because of questions over its role in possible environmental damage.

He said the Vale-favoured deal gives more power to the French loyalists in the Southern Province, meaning the FLNKS would not be able to control the southern mine and the jobs that the mine provides.

“It is not only about economics,” he said, “and that’s why it is so difficult to conduct business in New Caledonia.”

Industrial strategy
Another point was the industrial strategy presented by Trafigura.

“Trafigura would continue the recent strategy adopted by Vale: that is to say the production of NHC (nickel hydroxyde cake), and nickel saprolite type ore to be exported to China (and Finland, if Trafigura’s option is chosen).”

Goulard asked whether it was really possible to refine nickel in New Caledonia in a competitive way.

“The pro-independence supporters prefer to keep control over the island’s main economic sectors,” he said.

“But is it really the best choice when you want to be independent and you will need bigger foreign investment in the coming years? The current crisis gives a terrible image of New Caledonia to possible foreign investors.”

Michael Field, who writes for Nikkei Asia, has provided this article for Asia Pacific Report.

Article by AsiaPacificReport.nz