New Caledonia Nouvelle-Calédonie - Business Advantage ...

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Wala
Bélep Archipelago
NORTHERN ISLANDS
Poum
Ouégoa
Pouébo
NORTHERN PROVINCE
COR AL SEA
Ouvéa
0 2000KM
Koumac
Kaala-Gomen
Hienghène
Touho
Fayaoué
Chépénéhé
Poindimié
Voh
Ponérihouen
KONÉ
Houaïlou
Poya
Poro
Népoui
Kouaoua
Canala
Bourail
Thio
Moindou
La Foa
Boulouparis
COR AL SEA La Tontouta Païta
Lifou
WÉ
Tiga
La Rouche
Tadine
Maré
Dumbéa
Yaté
0 km 50
NOUMEA
Mont-Dore
Isle Ouen
Isle of Pines
Vao
Farino
Sarramea
SOUTHERN PROVINCE
New Caledonia is a unique Pacific territory.
Politically French and geographically part of
Melanesia, it is the closest Pacific territory to
Australia’s populous east coast. It is by far the most
developed Pacific economy, thanks principally
to the long-standing and large nickel mining sector and ongoing
financial subsidies from the French State.
This combination means that the GDP per capita of this small
group of islands is at first-world levels—higher than New Zealand
and close to that of France itself. New Caledonia’s infrastructure,
commercial development and Government services tend to
surpass those elsewhere in the Pacific, offering potential investors a
comfortable and stable environment in which to do business.
While New Caledonia is a French territory, it is increasingly
autonomous from la Métropole (as France is called). New
Caledonians are due to vote on full independence as early as
2014. It is by no means certain that independence will be the
final outcome, but the move towards greater autonomy seems
irreversible. As of July 2010 the territory has two official flags—the
French tricolore and that of the indigenous Kanak population.
mAJOR NEW PROJECTS
Nickel mining and processing is the major industry,
notwithstanding the brief slump caused by the 2008/9 global
downturn. About 25% of the world’s nickel reserves reside in New
Caledonia. In addition to extensive existing operations, there are
two major new nickel projects under way on the main island of
Grand Terre—the Xstrata-led Koniambo/ in the Northern Province
[Province du Nord] and Vale’s Goro project in the Southern
ECONOmIC UPDATE
LOYALTY ISLANDS PROVINCE
GREATER AUTONOmY, GREATER PROSPERITY
As it gains increased autonomy from France, New Caledonia continues to develop its economy
thanks in part to two major new mining projects.
A FRENCH TERRITORY WITH INCREASED AUTONOmY
New Caledonia became a French possession in 1853 and is
now classified as a French overseas territory—a territoire
d’outre-mer. It was a penal colony for four decades from
1864. Agitation for independence during the 1980s ended
in the 1988 Matignon Accord, itself confirmed by the 1998
Province [Province Sud]. These represent an investment of more
than US$7 billion in the New Caledonian economy (for more on
New Caledonia’s mining sector, see page 10).
While the major components of the projects are already
determined, there are many opportunities to offer goods
and services to the projects as well as to provide building
and construction services for the infrastructure and housing
‘The process of ‘rebalancing’ the New
Caledonian economy—for so long
dependent on the prosperous South—is
undoubtedly under way.’
developments growing up around them, especially in the
underdeveloped North.
‘We need the financial capacity, technical skills and know-how
of international businesses,’ Victor Tutugoro, Second Vice-
President of the Northern Province, tells Business Advantage.
While this remains the case, the process of ‘rebalancing’ the New
Caledonian economy—for so long dependent on the prosperous
South—is undoubtedly under way.
CONSTRUCTION BOOm
The new nickel projects are not the only factors driving activity
in building and construction. Estimates suggest that about 1000
hectares of land in New Caledonia are being redeveloped at any
one time.
Noumea Accord. Since then, New Caledonia has become
increasingly autonomous. The agreement also commits
France to conduct as many as three referenda between 2014
and 2024 to decide whether New Caledonia should assume
full sovereignty and independence.