Nickel mining in New Caledonia

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Nickel mining in New Caledonia
River South New Caledonia.jpg
A creek in southern New Caledonia. Red colours reveal the richness of the ground in nickel and iron oxides
Location
New Caledonia
Country Overseas territory of France
Production
Products Ferronickel, nickel matte
Production200,000 tonnes
Financial year2020
History
Opened1864

Nickel mining in New Caledonia is a major sector of the New Caledonian economy. The island contains about 7.1 million tonnes of nickel reserves, about 10% of the world's total. [1] [2] With an annual production of 200,000 tonnes in 2020, New Caledonia was the world's fourth largest producer after Indonesia (760,000), Philippines (320,000), and Russia (280,000), followed by Australia (170,000) and Canada (150,000). [3]

Contents

Nickel production in New Caledonia accounts for 6% of the island's GDP and 24% of private employment. With the exclusion of tourism, nickel ore and derived metallurgical products represent about 90% of the total value of exports. [4] [5] [6] The industry has played a dominant role in the politics of New Caledonia for over a century. [7]

History

Nickel was found in New Caledonia in 1864 by engineer Jules Garnier. It is distributed in lateritic layers that cover about one third of the area of the main island of New Caledonia. The nickel concentration is inhomogeneous and also varies with the depth. Whereas its usual concentration is 2–5 percent, it can reach 10–15 percent in scattered deposits of green garnierite. Those areas were developed first, using primitive manual extraction methods and were gradually depleted, resulting in the present average concentration of about 2.6 percent. This nickel is located at a depth of about 30 metres (98 ft). Shallower layers of 10–20 metres (33–66 ft) also contain nickel, but at half the concentration. They remain unexploited and constitute most of the nickel reserves of New Caledonia. [6]

Wide-scale mining started in 1875 in Houaïlou and Canala communes. Early mining was done by hand and then gradually became mechanised. By beginning of the 20th century two large mines at Bourai and Thio were established. [8] In the initial years, after nickel was discovered mining was done in about 330 mines. However, in 1981 there were only 30 functional mines as against 130 in the early 1970s. [9] Because of the remote location of the islands, about half of the ore was smelted locally, despite the underdeveloped industrial infrastructure of New Caledonia. Another half was exported, mainly to Japan. The first nickel smelter was built in 1879 with two other added in 1910 and 1913. The smelted product contained about 70–80% nickel and was sent for refining to France. Because of low nickel content in the ore, local smelting resulted in vast amount of displaced rocks near the smelters that changed the local landscape. [6]

In the 1930s, the Europeans (also called Caldoche ) and companies like the Société le Nickel dominated the economies of the colony. The native Melanesians were confined to reservations which made up only 10 per cent of New Caledonia's land area. [10] The main source of mine labor came from Asian migrants recruited by France. The arrival of these migrants from India, Japan, China, Java, and Vietnam both increased and changed the demographics of New Caledonia's population. By the 1920s, Asians outnumbered the French.[ citation needed ]

The production of ore was nearly constant between 1875 and 1948, but then increased about 70 times reaching a peak of about 8 million tonnes in 1971, at which time New Caledonia was the second largest nickel producer in the world. In the second half of the 1960s, the nickel industry experienced rapidly increasing demand linked to the Vietnam War. [11] New Caledonia's exports had quadrupled over the past decade. This rise followed by a decline, to about 4 million tonnes of ore in 1981, due to cyclones, reducing demand for the metal and increasing role of other world producers, such as Indonesia, Philippines and Australia. Correspondingly, the mined area decreased from 21,500 to 8,700 hectares (53,000 to 21,000 acres) and the number of people employed in the industry from about 6,200 to about 3,600. Nearly half of them worked at the mines and another half at the major Doniambo processing plant near Noumea. [6]

Mines

Strip mining is the most common technique adopted for nickel mining and statistics show that stripping of 500 million tonnes of overburden had to be removed to extract nickel ore, which amounted to clearing an area of 20 hectares (49 acres) per million tonne (five million tonnes of ore per year generate 25 million tonnes of tailings). [8]

The local nickel industry is dominated by the French company Eramet which has a 60% interest in its nickel mining subsidiary, SLN (Societe Le Nickel) in New Caledonia. [5] Other firms such as Falconbridge Ltd., Inco, Argosy Minerals and QNI however are still active in New Caledonia, particularly Inco in the Goro mine which produces both nickel and cobalt, about 54,000 tonnes of nickel annually. [5]

Despite a decline in the nickel mining, New Caledonia remains one of world's largest producers of laterite, a source of ferronickel (an alloy of iron and nickel) which constitutes about 20% of country's production. Another 80% is nickel extracted from saprolite. [12] In 2008, New Caledonian ferro-nickel was mostly exported to the European Union (41.8%), Japan (18.2%), Taiwan (18.2%), China (8.0%), India, South Africa, South Korea (2.4%) and the United States. On the contrary, all smelted nickel is sent to France. [12]

The major mines are Goro, Thio, Koniambo, Kouaoua, Nepoui – Kopeto and Etoile du Nord. [5] Recently the new Tiebaghi mine has been opened which will be responsible for some 30% of SLN's annual production, accounting to 20,000 tonnes per year. [5]

Goro Nickel Plant

Goro mine tailings dam.jpg
Camp minier goro nouvelle caledonie.jpg
Left: Goro nickel mine. Right: View of a mining camp at Goro Nickel Plant

Goro mine, is one of the largest hydrometallurgical process plants constructed, estimated to cost $3.2bn, with a design capacity of 60,000 tonnes of nickel per annum. The nickel is extracted from laterite, with proven reserves of 120 million tonnes. Cobalt is also being produced here from saprolite deposits. Opencast extraction to depths of 50–60 m is being employed (the shallower layers have no commercial value). The major share in the Plant is held by a consortium with Vale Inco (of Brazil) holding a 69% share and a joint company called Sumic Nickel Netherlands, Japan's Sumitomo Metal Mining Co. Ltd., and Mitsui Co. Ltd., holding 21%.share. However, in 2020 Vale is in the process of selling all of its interest to New Century mining. [13] The three provinces of New Caledonia hold the balance 10% share. The project was stalled for a while as the local community of Kanak people stiffly opposed the project, particularly of laying the offshore line. As of 2014 pollution into the lagoon was a problem and there were shutdowns. [14]

Environmental impact due to nickel mining

Even though the nickel mining operation is crucial to the economy of the region, its environmental adverse impacts on the environment and ecology have invited protests from the Environmental lobbies. The environmental groups, with its social and political undertones are seeking remedial measures to redress mines' landscape impacts and the ecological aspects. Some of the impacts brought out are the following. [8] [15] [16]

Ramsar Organization dealing with wetlands has brought out a few adverse effects from the nickel mining operations on the wetlands in the interior regions of New Caledonia. Many wetlands have either been lost or spoiled. Rivers and streams have been choked with tailings from the waste material dumped from the nickel mines. This has resulted in rise in bed levels of the rivers and consequent flooding affecting fertile agricultural lands. Many river delta areas have been affected creating changes in aquatic flora and fauna; the mining effluents are reported to have affected about 40 streams in their middle and lower reaches. Even estuaries and bays are reportedly affected by the “red clay and lateritic sub-soil,” which covers some of the mangrove forests. [9] [15]

During the boom period of nickel extraction in the state, there were serious visible effects on the environment, consequent to stripping of hill slopes. Erosion of hill slopes are reported to have continued, even after closure of some open cut mines in the Theo Mining Centre on the east coast of the main island. It is reported that the Thio centre provides, especially its Plateau mine (Theo Mining centre once produced 20 million tonnes of nickel ore), the most striking example of the environmental damage caused by mining activity in New Caledonia. [9] A study carried out in 1991 had observed that 1 million tonnes of solid mass of dumped material from the nickel mines caused shift of the delta of a lagoon by about 300 m due to sedimentation. However, it is also observed that nickel mining is a "politically sensitive subject...it remains the most important economic sector on the island”. [16] Studies done at Nouméa (the capital of the Island) had established that the flumes from nickel factories jetted out a plume of black and red smoke. The discharges from the factories had also recorded high levels of nickel, arsenic and lead, apart from phenol, hydrocarbons, hydrogen sulfide, PCB and pyraline. The head of the bay area also recorded higher levels of nitrites, nitrates and phosphates. [8]

Mines now in operation are better managed under opencast mining as compared to the past. However, according to environmental impact studies carried out, two new large nickel mining and processing plants have been identified as detrimental to the adjoining coral reefs and also to plant and animal species. Planned mitigation measures may still eliminate some adapted species. [17]

Pollution abatement measures

The government of New Caledonia has evolved strategies, technologies and policies to maintain the balance between environmental conservation measures and mining industry. The new legislation has ensured enforcement of installing pollution abatement equipment followed by re-plantation of vegetation after mine is exploited, and technological improvements for efficient economic extraction concomitant with environmental friendly pollution control measures. The government regulations have been effectively adopted by mine inspectors and through environmental impact assessments since 1992, even though regulations have been existence for 15 years prior to that. [8] Apart from introducing new techniques, other measures adopted for environmental abatement are: 14 zones covering 19,430 hectares (48,000 acres) have been declared protected areas from prospecting or mining, construction of sedimentation barriers, catchment area treatment, creation of settlement basin and terraces to reduce silt flow into streams and rivers, minimum road building activity in the area of mining, creation of a vegetation barrier along roads and in the vicinity of the mines, adopt satellite remote sensing techniques for mapping and locating mining areas which would avoid road building for the purpose and completely re-vegetate the closed or fully extracted mines. In addition, a monitoring team of inspectors of mines is also instituted to check and ensure that pollution abatement measures are fully implemented. In 1994, a mining centre was set up at Nepoui-Kopeto not only to increase productivity levels by adopting modern mining methods but also to develop pollution control capabilities at mining sites. [8]

Related Research Articles

<span class="mw-page-title-main">Economy of New Caledonia</span> National economy

New Caledonia is a major source for nickel and contains roughly 10% of the world's known nickel supply. The islands contain about 7,100,000 tonnes of nickel. With the annual production of about 107,000 tonnes in 2009, New Caledonia was the world's fifth largest producer after Russia (266,000), Indonesia (189,000), Canada (181,000) and Australia (167,000). In recent years, the economy has suffered because of depressed international demand for nickel due to the 2007-2008 global financial crisis. Only a negligible amount of the land is suitable for cultivation, and food accounts for about 20% of imports. In addition to nickel, the substantial financial support from France and tourism are keys to the health of the economy. In the 2000s, large additions were made to nickel mining capacity. The Goro Nickel Plant is expected to be one of the largest nickel producing plants on Earth. This plant produces an estimated 20% of the global nickel supply. However, the need to respond to environmental concerns over the country's globally recognized ecological heritage, may increasingly need to be factored into capitalization of mining operations.

<span class="mw-page-title-main">Vale Canada</span> Wholly owned subsidiary of the Brazilian mining company Vale

Vale Canada Limited is a wholly owned subsidiary of the Brazilian mining company Vale. Vale's nickel mining and metals division is headquartered in Toronto, Ontario, Canada. It produces nickel, copper, cobalt, platinum, rhodium, ruthenium, iridium, gold, and silver. Prior to being purchased by CVRD in 2006, Inco was the world's second largest producer of nickel, and the third largest mining company outside South Africa and Russia of platinum group metals. It was also a charter member of the 30-stock Dow Jones Industrial Average formed on October 1, 1928.

Falconbridge Limited was a Toronto, Ontario-based natural resources company with operations in 18 countries, involved in the exploration, mining, processing, and marketing of metal and mineral products, including nickel, copper, cobalt, and platinum. It was listed on the TSX and NYSE (FAL), and had revenue of US$6.9 billion in 2005. In August 2006, it was absorbed by Swiss-based mining company Xstrata, which had formerly been a major shareholder.

Boliden AB is a Swedish multinational metals, mining, and smelting company headquartered in Stockholm. The company produces zinc, copper, lead, nickel, silver, and gold, with operations in Sweden, Finland, Norway, and Ireland.

<span class="mw-page-title-main">Heap leaching</span> Industrial mining process used to extract precious metals from ore

Heap leaching is an industrial mining process used to extract precious metals, copper, uranium, and other compounds from ore using a series of chemical reactions that absorb specific minerals and re-separate them after their division from other earth materials. Similar to in situ mining, heap leach mining differs in that it places ore on a liner, then adds the chemicals via drip systems to the ore, whereas in situ mining lacks these liners and pulls pregnant solution up to obtain the minerals. Heap leaching is widely used in modern large-scale mining operations as it produces the desired concentrates at a lower cost compared to conventional processing methods such as flotation, agitation, and vat leaching.

<span class="mw-page-title-main">Norilsk Nickel</span> Russian mining company

Norilsk Nickel, or Nornickel, is a Russian nickel and palladium mining and smelting company. Its largest operations are located in the Norilsk–Talnakh area near the Yenisei River in the north of Siberia. It also has holdings in Nikel, Zapolyarny, and Monchegorsk on the Kola Peninsula, in Harjavalta in western Finland, and in South Africa.

<span class="mw-page-title-main">Heath Steele Mines</span>

Heath Steele Mines, situated 60 km (37 mi) northwest of Newcastle, New Brunswick, Canada, at the headwaters of the Tomogonops and Little Rivers, was a large and productive copper, lead, and zinc mine which operated from 1956 to 1999. The mine was an economic cornerstone of Miramichi communities throughout this period.

Lateritic nickel ore deposits are surficial, weathered rinds formed on ultramafic rocks. They account for 73% of the continental world nickel resources and will be in the future the dominant source for the mining of nickel.

Despite being a mineral rich country, Cameroon has only recently begun to investigate mining on an industrial scale. Strong metal and industrial mineral prices since 2003 have encouraged companies to develop mines here. The terrain mainly consists of granite-rich ground with areas of ultramafic rocks that are sources of cobalt and nickel. There are also deposits of bauxite, gold, iron ore, nepheline syenite, and rutile. Alluvial gold is mainly mined by artisanal miners.

<span class="mw-page-title-main">Mining in Tajikistan</span> Overview of mining industry in Tajikistan

Tajikistan has rich deposits of gold, silver, and antimony. The largest silver deposits are in Sughd Province, where Tajikistan's largest gold mining operation also is located. Russia's Norilsk nickel company has explored a large new silver deposit at Bolshoy Kanimansur. More than 400 mineral deposits of some 70 different minerals have been discovered in Tajikistan, including strontium, tungsten, molybdenum, bismuth, salt, lead, zinc, fluorspar, and mercury. These minerals have been found suitable for mining. Uranium, an important mineral in the Soviet era, remains in some quantity but is no longer extracted. The Tajikistan Aluminium Company (TALCO), an aluminium smelter, is the country's only large-scale production enterprise in the mining sector. Tajikistan hosts the annual Mining World Tajikistan, an international exhibition on mining in Dushanbe.

<span class="mw-page-title-main">Nickel mine</span>

A nickel mine is a mine that produces nickel. Some mines produce nickel primarily, while some mines produce nickel as a side-product of some other metal that has a higher concentration in the ore.

<span class="mw-page-title-main">Nickel mining in Western Australia</span> Mining activity in Western Australia

Nickel mining in Western Australia has been an industry that has had many fluctuations of fortune in its history. Large fluctuations in the world nickel price have seen mines close and reopen on several occasions.

<span class="mw-page-title-main">Goro mine</span>

The Goro mine is a large nickel mine in the south of New Caledonia, near the township of Yaté, Prony Bay, in the South Province. It was owned by the Brazilian company Vale, who, after failing to sell it to Melbourne-based New Century Mining in June 2020 sold it to Prony Resources New Caledonia consortium in April 2021. The large mine and plant was opened at Goro in 2010 although it has had frequent problems and stoppages.

The Cerro Matoso mine in northwest of Colombia is one of the largest open-pit ferronickel mines in the world. and the largest mine of South America, containing the largest nickel reserve in Colombia. It is operated by Cerro Matoso S.A., a company that was owned by Anglo-Australian multinational BHP between 1980 and 2015, and since then is owned by South32. There have been allegations that the mine's operations have caused heavy metal pollution affecting especially local indigenous Zenu and Afro-Descendant residents. These allegations have been rejected by Cerro Matoso on the basis of the available scientific and medical evidence. In March 2018 a Review Chamber of the Constitutional Court of Colombia ordered Cerro Matoso to pay damages to local communities. This decision was reversed partially in September 2018 by the Plenary Chamber of the Constitutional Court on the basis that it did not comply with constitutional precedent for payment of damages and noting that there was no evidence of a direct correlation between the mining operations and the alleged damages.

The Fenix nickel project also known as El Estor mine is an integrated mountain-top nickel mine and processing facility near El Estor in the Izabal Department of eastern Guatemala. The project consists of a cluster of several deposits with reserves amounting to 36.1 million tonnes of ore grading 1.86% nickel. The project is owned by Solway Group through Guatemalan subsidiaries CGN and Pronico.

The Solway Investment Group Limited, is a private international mining and metals group located in Switzerland. The Group conducts operations in North Macedonia, Ukraine, Indonesia and Guatemala.

<span class="mw-page-title-main">Nickel mining in Indonesia</span> Overview about nickel mining in Indonesia

Nickel mining in Indonesia began with small-scale exploratory mining operations during the Dutch East Indies era and began to expand in the 1960s. Most of Indonesia's proven nickel reserves are located in the islands of Sulawesi and Halmahera, and the country has the largest annual production and reserves of nickel in the world.

Bauxite has been mined in Indonesia since the Dutch colonial era.

<span class="mw-page-title-main">2020–2021 New Caledonian protests</span>

The 2020 protests in New Caledonia began on 28 October 2020 over a plan to sell a Vale-owned nickel and cobalt mine to a consortium led by Trafigura. The nickel mine and plant is known as the Goro mine. Independence leaders and pro-independence protesters wanted for the nickel plant to be owned by citizens of New Caledonia rather than foreign investors, though various arrangements have been proposed.

References

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