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New Caledonia Nouvelle-Calédonie - Business Advantage ...

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CREDIT: SMSP<br />

works are well advanCed at the vaouto<br />

site in new <strong>Caledonia</strong>’s north provinCe.<br />

KONIAmBO<br />

CONSTRUCTION<br />

SITE BRImmING<br />

WITH ACTIVITY<br />

With a budget of US$3.8 billion (around 370<br />

billion Francs XPF) and more than 2000<br />

employees currently working on the Vavouto<br />

site—a figure that will increase to more than<br />

6000 when the construction reaches its peak<br />

in 2011—the North plant construction site in <strong>New</strong> <strong>Caledonia</strong> is<br />

considered to be one of the biggest construction sites in the world.<br />

A RELIABLE PROCESS FOR AN<br />

ABUNDANT mINERAL RESOURCE<br />

Koniambo Nickel SAS (KNS), a joint venture responsible<br />

for the operation of the pyrometallurgical treatment plant, is<br />

implementing economical and energy efficient nickel smelting<br />

technology first developed by Falconbridge. It does not require the<br />

use of autoclaves or complex circuits, which means there is reduced<br />

technological impact.<br />

RESPONSIBLE AND COmmITTED<br />

PARTNERS<br />

SMSP is a partner holding 51% of the capital in the KNS joint<br />

venture that was created to develop the vast mineral deposit in<br />

the Koniambo massif. Its partner, Xstrata Nickel, which holds<br />

49% of the capital of KNS, is the subsidiary and nickel branch of<br />

Xstrata Plc. In the initial phase of the project, SMSP contributed<br />

the deposit at Koniambo and the advantages provided by its local<br />

12<br />

NICKEL mINING<br />

The Koniambo massif remains one of the largest and richest untapped nickel deposits in the<br />

world, and it constitutes a long-term asset for both SMSP and its partner, Xstrata Nickel.<br />

implantation and Falconbridge (taken over in 2006 par Xstrata<br />

Nickel) contributed the feasibility studies. Today, Xstrata Nickel<br />

stands as guarantor for the financing and is responsible for the<br />

techvnical and operational management of the project.<br />

THE WORKS SCHEDULE IS RESPECTED<br />

With more than 57% of the work achieved (as of July 2010),<br />

the North plant is on track to be able to begin processing its first<br />

minerals in 2012 and to then reach its annual production capacity<br />

of 60,000 tonnes of nickel in the form of ferronickel in 2014.<br />

At Vavouto, the development of the site facilities, the civil<br />

engineering works and the excavations for the plant, the thermal<br />

power plant, the installations for preparing the mineral and the<br />

placement of the ocean outfall are underway. The dredging of the<br />

access channel to the port, which has a total length of 5 km, is<br />

operational and the main quay, which became operational in early<br />

June, enables the material to be delivered that is necessary for the<br />

construction of the power plant and the assembly of the plant<br />

modules (the first of which arrived in early September). On the<br />

mining side, the excavations works for the access road and for the<br />

land conveyor which is 11.5 kms long and the preparation work for<br />

the screening and crushing of the mineral is well advanced.

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