14 Jun 2007

New Caledonia's Goro project faces further delays, says analyst

4:11 pm on 14 June 2007

An Australian-based business analyst says he expects further delays and cost blow-outs for the New Caledonian Goro Nickel project.

The 3.2 billion US dollar Goro Nickel project, now owned by Brazil's CVRD company, has seen delays and cost overruns amid opposition by local groups.

Advisors from an international peace council, known as Khredda, are acting as mediators between the local government, the company and Goro Nickel's main project opponent, Rheebu Nuu.

Goro Nickel expects to start its production by late 2008, but Intersuisse's senior analyst, Peter Arden, says the estimate is very optimistic.

"While there does seem to be a gradual resolution of some of the issues and ultimately I think the project will get up, it will cost a lot more, it is going to be significantly delayed. It is already very much delayed. It was suppose to be in production by now, but it is still not at all and they still got some issues."

Peter Arden, a senior business analyst at Intersuisse.