The Canadian nickel company Falconbridge has defied analysts' expectations and deferred an announcement on how it will respond to an offer from the French state to underwrite its planned project in the north of New Caledonia.
The French newspaper, Le Figaro, reports the silence from Falconbridge on the project is significant, because the company says it will only go ahead with construction at the Koniambo site if the French state underwrites the project to a certain level.
Le Figaro has reported its sources as saying France is offering Falconbridge 7-hundred and 19 million US dollars in taxbreaks, and 5-hundred and 15 million dollars in bank guarantees.
The company has promised to begin construction of the Koniambo project by the end of the year, but costs have reportedly overrun to 2 POINT 7 billion US dollars.
The French state-owned mining firm, Eramet, is tipped to be the main player in the project should Falconbridge pull out.
