EU and New Caledonia sign nickel agreement

The European Union and New Caledonia signed a protocol of agreement focused on nickel, aiming to boost the competitiveness of New Caledonia's mining industry and ensure a stable supply of critical metals for Europe. The agreement was signed by Stéphane Séjourné, an executive vice president of the European Commission, during his visit to the French territory in the South Pacific.

EU emphasizes resource control and partnership

Séjourné assured AFP that the partnership does not challenge New Caledonia's control over its nickel resources. This agreement is the 17th of its kind between the EU and New Caledonia and includes plans to increase nickel processing on-site in the territory. A detailed roadmap with specific actions is expected within six months.

EU’s long-term goals for critical materials

The EU aims to transition 17 critical raw materials currently in a "red zone" of supply risk to a "green" status by 2030. Séjourné warned against allowing a single actor to control the flow of these resources and use them as a political tool. He emphasized the need to modernize the sector and increase its competitiveness without creating a new mining region.

EU explores financial and commercial tools

The European Commission is considering new financial tools to stabilize nickel prices, including long-term purchase contracts, compensation for price fluctuations, and a minimum price floor. Brussels is also working on more binding commercial instruments to diversify supply sources. However, the EU currently has limited capacity to process nickel, which is another challenge in achieving its goals.

New Caledonia’s local opposition and demands

Independentist officials from the Kanaky NC group boycotted a speech by Séjourné at the New Caledonia assembly, the Congress. Séjourné noted that the empty seats at the Congress did not help in persuading his European colleagues to support New Caledonia’s projects. Kanaky NC criticized the lack of consultation with the Congress groups.

Local demands for inclusive strategy

In favor of the partnership, Kanaky NC insists on a locally developed strategy that involves provinces, the Congress, customary leaders, industry operators, and the state. The group also demands guarantees that local communities benefit from the agreement. Alcide Ponga, a government official involved in the MoU, wants to ensure maximum local benefits from the partnership.

Calls for strategy review and consultation

New Caledonia’s government president, Milakulo Tukumuli, plans to review the nickel strategy and the mining code over the next six months. He warns that failure to act could have serious consequences. Meanwhile, customary leaders from Inaat Ne Kanaky demand prior consultation and a formal role in shaping the roadmap for the agreement.