Article - Vale Inco''s Goro nickel constructioAccording to Mineweb:
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PIPE LAYING AT A HALT
Vale Inco's Goro nickel construction problems continue
The standoff between locals and Vale Inco over the construction of an offshore tailings pipe for the Goro nickel project in New Caledonia shows no signs of ending.
Author: Lawrence Williams
Posted: Tuesday , 04 Mar 2008
TORONTO -
A stand-off continues over the laying of a tailings pipe offshore at Vale Inco's $3.2 bn Goro nickel project in Caledonia. Local fishermen, and other indigenous Kanak people have been blockading the pipelaying operation forcing it to be halted, and there are fears that this situation could continue for an unspecified amount of time. Without a disposal area the huge hydrometallurgical nickel plant would not be able to operate.
The impasse has arisen with local fishermen saying that the disposal area is an area in which fishing takes place and that they fear the discharge into the area would pollute and damage their fishing grounds.
Now it appears that a key local politician, Philippe Gomes, President of New Caledonia's South Province government has said that Vale Inco must find an alternative, if there are any, on a technical, environmental and economical level.
This is easier said than done. Originally Vale Inco was to build a tailings disposal area on land, but local activists managed to put a halt to that plan and the new offshore proposal was implemented. Activists have taken out an injunction against construction of the offshore tailings pipe.
In its response to the injunction, Vale Inco is reported as saying it is losing €100,000 a day, although this is pretty small in relation to the overall project cost.. The delays are perhaps more serious for other environmental reasons with the activists saying Inco cannot lay the pipe in summer due to it being cyclone season and in winter because the area attracts whales, giving the company limited windows when the pipe can be laid.
However, athough Jeffrey Zweig, who is Deputy Managing Director at Goro nickel has held conciliatory meetings with the activists and other locals, there have to be fears that the pipe laying standoff will put back Vale Inco's start-up programme at the operation. Last month Zweig told Bloomberg that plant commissioning would start mid-year this year with production towards the end of 2008.
Ultimately one suspects money will talk and the project will proceed, as there is so much at stake here, both for Vale Inco and New Caledonia. But delays could be costly and these look increasingly likely as the disruption continues.
When complete Goro is designed to produce 60,000 tonnes of nickel a year.
The president of the South Province government, Philippe Gomes, has taken position against Inco laying it's waste pipe. At a meeting with other Inco oppo season and in winter because nents on friday morning he said "The company [Inco] must propose alternatives to the pipe, if there are any, on a technical, environmental and economical level". This was reported in today's local newspaper "Les Nouvelles".
Philippe Gomes is trying to revive his political career which took a beating following his initial support of Goro Nickel. In the next 12 months most of the workers on the construction site are expected to be unemployed and there will no longer be any argument in favour of allowing Goro Nickel to go ahead. The president recently proposed a new 1% tax on Goro Nickel's revenue but is going increasingly public on his new opposition to the project.
Goro Nickel is responding to an injunction that has been lodged by the environmental group Codefsud. In their defense summary submitted on the 26th of february, Inco claim they are losing 100 000 euros a day due to the halt in the work.
Since they are not allowed to lay the pipe in the summer because it is cyclone season and they are not allowed in winter due to whales in the area, Inco are worried about a possible delay of dozens of month may render the project unviable financially due to the extra costs.