The crisis in New Caledonia stems from the volatility of the nickel industry, which has been in turmoil for over a decade. The island’s dependency on nickel, which accounts for a significant portion of the world’s reserves, has led to social unrest and violence. However, nickel has always been a crucial part of the economy and plays a role in wealth-sharing agreements in the region.
Despite its importance, the nickel industry is facing challenges, with prices dropping significantly in recent years. Production has fallen, leading to plant closures and job losses. Major players like Vale, Glencore, and Trafigura have exited the market, leaving many employees at risk of redundancy.
Plants shut down
The future of nickel mining in New Caledonia remains uncertain, with ongoing struggles and a need for government intervention to stabilize the industry. The once prosperous nickel sector is now struggling to survive in a changing global market.
New Caledonia: Six questions to understand the current crisis