Riots in the French-controlled Pacific territory prompted the suspension of operations in May. 

According to a company statement, Prony Resources’ (Prony) Goro operation would resume operations on Monday, 18 November, following the restoration of power and water supply as well as road access to its facilities without giving a timeline or estimate for production.  

Prony is one of three nickel producers in New Caledonia and supplies mixed hydroxide precipitate (MHP) to the EV battery supply chain. The company’s customers include Tesla, which signed a multi-year nickel supply contract with Prony in 2021. Last year, Goro produced almost 32kt Ni-in-MHP, making it one of the most significant sources of battery-grade nickel and cobalt intermediates outside Indonesia.  

Earlier this year, Prony was reported to be seeking a buyer to replace its current shareholders, including metals trader Trafigura. As part of this, South Africa’s Sibanye-Stillwater was considering Goro as a potential source of nickel intermediates, although the company was not interested in acquisitions.  

In May, the French government deployed police and military reinforcements in an effort to end unrest over Paris’s controversial move to change the rules on provincial elections. The escalating violence around the capital of Nouméa that followed was reported to be one of the worst periods of unrest recorded in the territory since the 1980s. French authorities have since attempted to ease tensions by dropping the reform and postponing local elections, though a partial night-time curfew remains in place.  

Nickel represents a key part of New Caledonia’s local economy, and the island is a significant producer of refined and intermediate nickel products based on its abundant laterite ore reserves. Despite French government support, New Caledonia’s nickel operations suffer from high energy costs and, like the rest of the industry, have come under increasing competition from lower-cost Indonesian nickel supply.