The agenda is full for this triple ministerial visit. From Wednesday February 21 to Friday February 23, three members of the government are traveling to the New Caledonia archipelago: the Minister of the Interior, Gérald Darmanin, the Minister of Justice, Éric Dupond-Moretti, and the new Minister Delegate for Overseas, Marie Guévenoux. A trip aimed at resolving the various crises – prison overpopulation, institutional future of the territory – that this semi-autonomous French community of 270,000 inhabitants is going through.
Marie Guévenoux and Gérald Darmanin, this is their sixth trip to New Caledonia in 18 months, are coming to support the New Caledonian nickel industry. If the small companies responsible for extracting and exporting this ore are doing well, the three groups responsible for the metallurgy (transformation) of local nickel have been going through great financial difficulties for several years.
The three metallurgical groups are in deficit
Indeed, the combination of poor yields, rising energy costs, strong foreign competition and the recent fall in nickel prices are weighing on the sector. And this, while New Caledonia is the fourth largest territory in terms of production of this white gold.
Thus, the three operators were in deficit in 2022, indicates a report of the General Inspectorate of Financewith losses estimated at 250 million euros for Société Le Nickel, 135 million euros for Prony Resources, and up to 2.21 billion euros for Koniambo Nickel.
The latter two are also looking for a buyer. But if the State has since considered granting a loan of 140 million euros to Prony Resources to avoid the cessation of payments, according to a local elected official last Thursday, the majority shareholder of Koniambo Nickel has lost patience. Monday, February 12, the Swiss giant Glencore decided to shelve the New Caledonian metallurgist’s factory, which has never been profitable, while waiting to find “a new industrial partner”.
New prisons to face overcrowding
Another crisis for the government to resolve: that of the New Caledonian prison system. In addition to inaugurating the Koné detention center on Friday, opened last year on the main island of Grande Terre, Minister of Justice Éric Dupond-Moretti is also expected to announce the construction of a new penitentiary center near the chief location of Nouméa.
A response to criticism aimed at the current Nouméa prison, where the General Controller of places of deprivation of liberty has been warning since the end of 2019 of the “serious violation of fundamental rights” of prisoners due to overcrowding. A new establishment which represents an investment “of 500 million euros”, indicated last Friday the High Commissioner of the Republic in New Caledonia, Louis Le Franc.