DJ Activists Hint At Renewed Attacks In New Caledonia Nickel...

DJ Activists Hint At Renewed Attacks In New Caledonia Nickel Proj

SYDNEY (Dow Jones)--New Caledonian activist group Rheebu Nuu has hinted at
renewed attacks against Companhia Vale do Rio Doce's (RIO) Goro Nickel project
and vowed to continue legal action against the development the
60,000-metric-ton nickel project, Rheebu Nuu's secretary general said Monday.

"We've launched an appeal to the 300 chiefdoms of the Kanak people on Feb. 3
to support us in actions that should start up this time like they did in April
2006," Rheebu Nuu's Raphael Mapou said.

Last year in April activists attacked the project, burning a water pipe and
vehicles, causing at least $10 million in damage and putting construction work
on hold, increasing costs to at least $3 billion from an initial $2.15 billion.

Since then CVRD acquired the project via its Inco takeover. CVRD Chief
Executive Roger Agnelli will visit the French-controlled island at the end of
February and will represent an updated development plan to local communities.

Meantime, Rheebu Nuu will pursue legal avenues to stop construction after a
French appeals court overturned a ruling that ordered construction work at a
tailings storage area to cease at the beginning of February.

"We will pursue the dossier presented to the appeals court to clarify
environmental law," Mapou said.

"We've formally appealed to the President of the Southern Province to stop
construction work due to lack of permits. If he refuses, we will challenge
existing permits at the administrative tribunal. Up until now we've only filed
one injunction to stop work at Goro, and we were successful," Mapou said.

In November, a French court dismissed the injunction to halt the $3 billion
project altogether on environmental grounds, but gave Goro two days to stop
land clearing for a tailings disposal area or face hefty daily fines. Tailings
are mining residues. Discharges from the residues into the local area and sea
is a major sticking point for the project.

CVRD holds 69% in the project with New Caledonia's three provinces holding a
10% stake and Japan's Sumitomo Metal Mining Co. Ltd. (5713.TO) and Mitsui Co.
Ltd. (8031.TO) holds the remaining 21%.



-By Elisabeth Behrmann, Dow Jones Newswires;

61-2-8235-2965; [email protected]

-Edited by Jarrett Banks


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