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Reuters reported that dozens of mining companies have taken to the streets of Noumea, New Caledonia to protest the government’s partial ban on nickel exports to China.
Reuters reported that dozens of mining companies have taken to the streets of Noumea, New Caledonia to protest the government’s partial ban on nickel exports to China.
Specifically, exports of nickel laterites to China have been halted due to “New Caledonia’s longstanding supply agreements with Australia.”
As quoted in the market news:
“The opening to China is against the mining strategy established in 2009 to maintain export volumes to traditional clients of New Caledonia,” Philippe Germain, president of New Caledonia said in a statement.
Germain also said exports to China were unpredictable and blamed the Asian giant for the substantial fall in nickel prices.
Nickel prices hit a six-year low in July and are down 27% this year, largely on slowing demand.
The veto angered a large number of truckers who subcontract for mines such as Société Minière du Sud Pacifique SA (SMSP), Ballande Group and Gemini, saying the ban will force many of them to shut down in an already difficult environment with falling export volumes.