Transcript
It all started a decade ago amid hopes of fortunes to be made. The commodity boom of the last decade saw the nickel price shoot up to $US50,000 a tonne and spending about $US5 billion on yet another nickel plant, this time in Goro in the territory's south, made sense. After all it was thought the ore reserves would last for decades.
But after the collapse of the nickel price to just a fifth of its 2007 price, production costs now exceed what the market is prepared to pay.
The worst case scenario now is for Vale to mothball its plant.
A unionist Pascal Pujapujane told New Caledonia's television station Premiere this needs to be averted because too many depend on it.
"That's 5,000 employees and that means 10,000 people who need to be fed."
What sent the alarm bells ringing was last month's announcement by Vale's new CEO Fabio Schvartsman in Brazil that it was reviewing its loss-making operation in New Caledonia.
But what is planned and when a decision will be made is not clear.
The head of Vale New Caledonia has been in Brazil and on his return he briefed union representatives who came away with mixed feelings.
For unionist Evelyne Serieyssol, also speaking on Premiere, things are critical.
"We have to do something - today the situation is serious and we've got five months to do it. That's very short. We have to stay active, make proposals and stay engaged with management."
New Caledonia's dependence on nickel, which accounts for practically all its exports, appears to be turning from a boon to a burden, and restructuring has been on the agenda at the other two huge nickel plants, SLN and Koniambo.
With an independence referendum due next year, questions are also being raised about the future of the territory's economy.
The uncertainty over nickel challenges the Vale New Caledonia's decade-old vision.
"Vision - to become the number one company in the world in natural resources by creating long-term value through excellence and passion for the people and the planet."
Further talks are due later this week, with unions seemingly prepared to accept cuts.
