The northern provincial government of New Caledonia and the Canadian mining company Falconbridge today announced the formation of a new company to run a nickel project.
Koniambo Nickel SAS will build a plant to process a giant deposit of nickel ore.
The company is 51 per cent owned by the nickel mining entity of the northern province, and 49 per cent owned by Falconbridge.
The Canadian firm is factoring the cost of a 250 million US dollar feasibility study, into its contribution to start- up capital costs.
The processing plant is expected to cost 2.2 billion US dollars and be in operation by 2010.