BASE METALS GORO PROTESTS CONTINUE World's largest new nickel project still has local difficulties Continuing environmental and local opposition still affecting New Caeldonia's big Goro Nickel project – may delay startup.
Author: Lawrence Williams Posted: Friday , 25 Apr 2008
LONDON -
One very significant project seemingly not addressed in the latest Vale production statement and forecasts is that company's $3 billion Goro nickel project in New Caledonia, which was inherited in the Inco takeover. Work on laying the vital tailings pipeline for offshore disposal of plant waste has now been halted for around three months due to local opposition and the company is also reported to be awaiting a new operating licence.
The Goro project is said to be the world's largest metallurgical project currently under construction and is close to completion, but it would be unable to operate without a tailings disposal system in place. With environmental and local groups mounting a remarkably successful blocking campaign there may still be further delays. The plant opponents say the pipeline will damage an offshore area which is likely to be made a UNESCO World Heritage Site, as well as interfere with local fishing grounds. Vale Inco says the tailings will be inert and there will be no damage either from the effluent or in the laying of the tailings pipe.
Originally the mining company had pledged not to dispose of tailings offshore, but its proposed onshore site was effectively stopped by local protests too, forcing it to change its plans.
Goro is still officially due to come on stream this year, but the likely start-up date has been put back as the dispute with locals and environmentalists continues. There is even talk in the New Caledonian press of the project being suspended altogether, although one would think this unlikely given the huge expenditures to date.
Radio New Zealand reports that the local daily newspaper, Les Nouvelles Caledoniennes, has been told that abandoning the project in the face of the various obstacles would amount to a catastrophe. Goro's management is reported to have declined comment but one union says it hopes the project won't be stopped although he says it is possible.
Vale Inco has been trying a softly, softly approach to the plant opponents, knowing that it is a very sensitive issue - and also that the protesters have had a propensity towards violent demonstrations and plant sabotage in the past.
There is also an impression that the New Caledonian and local government may not be quite as supportive of the project as in the past, but given its potential positive impact on the Pacific Island's economy it would seem likely that the impasse will be ended at some stage, but how long this may take remains to be seen.
Meanwhile construction of the plant itself continues and as the pipeline doesn't appear to be a critical path item, some delay in its completion can probably be accommodated without altering the schedule significantly. But, the longer the dispute drags on the more it looks as if Vale Inco may have to defer plant start-up to early next year at the earliest, although the schedule is to build up to full production gradually with maximum output only being reached in 2013. Again there is probably some flexibility in timing here assuming that the new Pressure Acid Leach process developed by Vale Inco, does not suffer too much from teething problems - problems which are not uncommon in big hydrometallurgical projects of this type.
At full capacity, Goro will produce 60,000 tonnes of nickel and between 4,600 and 5,500 tonnes of cobalt per year. A workforce of approximately 800 employees will be required.
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