14 Jul 2006

New Caledonia's Goro project faces rethink

1:39 pm on 14 July 2006

The Goro Nickel company in New Caledonia has proposed a so-called citizens pact in the face of the opposition to the two-billion US dollar project.

A top manager, Jeff Zweig, says all facets are being considered as the project is no longer on track to meet its original deadlines and be completed within the original budget.

He says the new framework will be announced before the end of year as the nickel plant won't be finished by the end of next year.

Kanak groups and activists have called for a suspension of the project amid concern over the plant's environmental impact.

Goro Nickel has now proposed a new dialogue to keep the project on track.

This comes as the US company, Phelps Dodge, has offered to take over Inco of Canada, which is the parent company of Goro.