PARIS, May 30 (Reuters) - The nickel processing plant of
New Caledonian producer SLN will need supplies of ore in the
coming days to ensure its furnaces keep working, the CEO of main
shareholder Eramet said on Thursday.
SLN has stopped mining in New Caledonia due to riots this
month sparked by an electoral reform and the firm's Doniambo
plant has been at running at minimum capacity.
"We urgently need to be able to bring ore to Doniambo,"
Eramet Chair and CEO Christel Bories told the group's annual
shareholders' meeting.
"If we're not able to re-supply Doniambo in the coming days,
I would say the next 10 days, then we will start to enter a
danger zone for the furnaces," she said.
The plant has so far been able to use large stocks of
ore that it typically holds at this time of year to offset the
impact of the rainy season on mine output.
While mining was still at a halt, loading of some stocks had
started on Thursday at one of SLN's mines following discussions
with protesters, Bories added.
The unrest has deepened a crisis for New Caledonia's
loss-making nickel sector, for which the French government has
been trying to negotiate a rescue package.
Eramet has stopped financing SLN due to the recurring losses
and in February secured a deal to remove SLN's debt to the
government from Eramet's balance sheet.
The riots meant that the second quarter would be "even more
difficult" for SLN than the previous quarter, Chief Financial
Officer Nicolas Carre said, adding that the debt deal had
removed the risk of financial impact on Eramet from its
subsidiary.
Eramet's nickel operations are now focused on Indonesia,
where it operates the world's biggest nickel mine in partnership
with Chinese steel group Tsingshan.