25 Apr 2016

New Caledonia's SLN in line for huge French loan

3:13 pm on 25 April 2016
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Photo: RNZ / Johnny Blades

French media reports say the government will lend $US330 million to stave off the collapse of the loss-making New Caledonian SLN nickel company.

The reports say the rescue plane will be announced in Noumea on Friday by the French prime minister, Manuel Valls, who is also due for talks on the territory's institutional future.

The terms of the loan are reportedly still under discussion, but the reports say the funds should allow SLN to restructure its operations on the condition that none of its 3,000 employees be laid off for two years.

Talks in Paris between the government and SLN's parent company, Eramet, were reportedly deadlocked which triggered the initiative to lend SLN the funds.

SLN, which has been the territory's main employer, has been losing more than $US20 million a month since the recent sharp drop in commodity prices

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