Korea Zinc pulls $1.8 billion share sale plan after probe
The world’s largest zinc smelter has been caught up for months in a fight between its largest shareholders over strategy and direction.
New Caledonian nickel producer Koniambo Nickel SAS (KNS) has launched a redundancy plan for its 1,200 workers after co-owner Glencore failed to find a buyer for its stake ahead of an end-August deadline, KNS said on Friday.
KNS stopped its mine and plant operations in March after Glencore decided to sell its interest following years of losses at the operation. Glencore agreed to pay for workers’ salaries and for the furnaces to be kept hot until the end of August at the facilities in the French southern Pacific territory.
KNS said discussions with potential investors were continuing, with three groups still expressing an interest.
“Nevertheless, we have neither a firm offer nor visibility on the funding of our operations,” it said in a statement.
The firm now faces the prospect of laying off all staff after Aug. 31 when the six-month care and maintenance period funded by Glencore ends, with the exception of around 50 workers who would be needed to supervise the plant, KNS added.
KNS is part of a struggling New Caledonian nickel industry, which has been dealt a further blow by unrest in the territory since May.
French mining group Eramet said its local subsidiary SLN remained at a virtual standstill and continued to receive funding from the French government to stay in business.
(By Gus Trompiz; Editing by Tomasz Janowski)
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