PARIS, April 10 (Reuters) - French mining group Eramet

faces a stoppage from Thursday at some of the mines

operated by its troubled New Caledonian nickel subsidiary SLN in

a dispute with local authorities over financial guarantees.

SLN is preparing to suspend activity at its mines in New

Caledonia's northern province after the provincial government

rejected a short extension of the guarantees, which are required

to cover potential environmental restoration, Eramet said in an

emailed statement.

Eramet said it was working with the French government on an

agreement to extend the relevant guarantees, which expire on

Wednesday, for a 12-month period.

Eramet has provided such guarantees since 2020 for SLN given

that the nickel producer has been unable to do so itself, the

group added.

SLN, which processes its mined nickel at a smelter in

southern New Caledonia, is involved in wider discussions to

salvage the loss-making nickel industry in the South Pacific

territory.

The French government has been negotiating a rescued package

for the industry, involving hundreds of millions of euros in

loans and subsidies in return for a revamp of mining permits,

exports and energy infrastructure.

But an end-March deadline set by Paris to sign off the deal

was missed as New Caledonian parties continue to debate the

proposals amid wider political tensions divided between

pro-independence and loyalist parties.