The French ministers for the economy and overseas territories have this morning urged the Canadian nickel company Falconbridge to come to a decision quickly on whether it will go ahead with the Koniambo project in New Caledonia.
Hundreds of striking unionists have held a rally in New Caledonia's territorial capital, Noumea, in support of the project in the mainly Kanak northern region.
The union USTKE says the project is at an impasse because the French state has imposed so many restrictions on financing that no bank will support the project.
Local radio reports people marched quietly through the streets of Noumea in a colourful procession, disrupting traffic.
The Canadian nickel company Falconbridge is set to run the Koniambo project in partnership with local companies and the French state.
Falconbridge may now merge with another Canadian nickel company, Inco, which is planning the Goro project in the south of the territory.
Union members say in any case France must underwrite the Koniambo project in line with the accords of Bercy and Matignon.
