New Caledonia’s significance todayA country’s strategic importance can be assessed in various ways. Its value in terms of purelymilitary-industrial strategic potential and capacity is a critical and enduring yardstick. But themeasure of a country’s living potential can and should be considered also, as it is of growingrelevance for the 21 st century and beyond. This more holistic approach is vital in properlyacknowledging capacity to cradle and support humanity, and to play a sustainable role as partof our shared biosphere. With both these sentiments in mind, the next section explores whyNew Caledonia remains significant to Australia and the wider world in terms of its geo-locationand resources. It will be argued that New Caledonia has advantages and challenges in both andthat, on reflection, its geo-strategic significance to Australia’s north-eastern approaches andher regional role in Australia’s foreign policy remains largely unchanged.Endemic resourcesToday, New Caledonia’s resource portfolio continues to remain influential, with substantialdeposits of nickel, as well as chromium, iron, cobalt, manganese, silver, gold, lead and copper.It has over 25 per cent of the world’s nickel ore reserves. And although price fluctuationsin the world market have recently been volatile, there is no question that this metal willremain—if not grow—as a key component of many strategically-important manufacturingindustries, including vehicles, armaments and a range of construction materials. What remainsunknown is how valuable these minerals will become and the extent to which New Caledoniawill develop indigenous refining and value-adding processes.New Caledonia’s mineral export partnerships are slowly shifting and will likely continue to doso as the industrial thirst of Asia’s developing economies grows. While scope exists for somefuture competitive tensions with a fellow mineral export giant, such as Australia, it seemsmost likely that the world market will remain firmly to the suppliers’ advantage. However, justas one of Japan’s aims in the Second World War was to secure New Caledonian nickel for Axisarmaments production, it is very likely that similar designs may arise in the future. Foreigninvestment in New Caledonia and its neighbours in Melanesia is already disproportionate toother less well-endowed Pacific countries and this trend will undoubtedly continue. It will bein Australia’s interest that New Caledonia’s mineral resources remain in ‘sound hands’ for theforeseeable future.Even though New Caledonia’s per capita GDP is larger than New Zealand’s, its imbalancedeconomy poses a challenge to its political future. Currently, its inequity in trade sectors can beameliorated across France’s broader economic trade portfolio. However, if future circumstancessee New Caledonia no longer part of such a coherent trade framework, its economy will needcomprehensive restructure, to avoid vulnerability to key trade sectors, including by formingreplacement linkages with new trade partners.38
One such vulnerable sector is energy. New Caledonia’s renewable energy sector is growingand currently meets 16 per cent of the country’s domestic needs, notably via wind generationbut also solar. However, New Caledonia’s indigenous conventional energy resources are verymodest, with heavy dependence on imported fossil fuels. Additionally, the vast quantities ofenergy that mineral extraction consumes leads to an unwanted trait shared with Australia—one of the highest per capita carbon footprints in the Pacific.New Caledonia’s living resources paint a contrasting picture. The archipelago boasts adiversity of terrestrial animals, plants and bird life, unmatched in such a comparatively smallarea, and considered one of the most important in the world. Over 74 per cent of its 3,270plant species and nearly 90 per cent of its reptiles are endemic. New Caledonia’s barrier reefsform the second largest living structure in the world. They comprise the world’s most diverseconcentration of reef structures and rival Australia’s much larger Great Barrier Reef in coraland fish diversity.However, scale and diversity are not the only reasons why New Caledonia’s biosphere is soimportant. The archipelago sits astride the East <strong>Australian</strong> current as it approaches Australiafrom the equator, linking the food chains and life cycles of the two with the rest of theSouth Pacific in a symbiosis that humankind still does not comprehend. Collapses in marineecosystems in one may irrevocably affect pelagic fish stocks in neighbouring countries.This underscores the importance of collaboration with Australia and other Pacific neighbours,not only to protect marine resources but also to share information on maritime security morebroadly.New Caledonia’s sea-life assets are not its only marine resources. Its economic exclusion zone(EEZ) is 1,740,000 square kilometres—bigger than metropolitan France and its EEZ combined.Furthermore, France has recently won a dramatic increase in New Caledonia’s offshoreterritory, through its successful ‘extended continental shelf ’ (ECS) submission in 2009 to theCommission on the Limits of the Continental Shelf. Those resources that lie beneath the seawill become ever more valuable as humankind continues to consume the world’s terrestrialresources and as exploration and extraction technologies improve. The ZoNéCo (ZoneÉconomique de Nouvelle-Calédonie) project, currently underway to map and understand theunder-seabed resources within New Caledonia’s EEZ and ECS, will hopefully reveal in timetheir true potential richness.Strategic geo-locationNew Caledonia’s resources alone are thus sufficient to deserve regional and global consideration.However, New Caledonia’s very presence in the South Pacific is equally significant. Even beforeCapitaine Tardy de Montravel established the outpost of Port-de-France (now Nouméa) on 18<strong>Aug</strong>ust 1854, European sandalwood and bêche-de-mer traders, explorers and missionariesalike had seen and understood the strategic promise of its natural harbour. Few other ports inthe South Pacific, beyond Port Jackson, rivalled its potential. And, during Australia’s colonial39
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GUIDANCE FOR AUTHORSThe Australian