14 Sep 2011

Dispute halts New Caledonia nickel ore exports to South Korea

1:12 pm on 14 September 2011

A dispute in the north of New Caledonia has stopped the export of nickel ore from the SMSP site to its South Korean partner, Posco.

Members of the Kaala-Gomen tribe claim that the United Nations Declaration on the Rights of Indigenous Peoples provides for them to have a share of the profit drawn from mining.

SMSP says it is considering to suspend the employment of more than 300 people at its Ouaco site, should negotiations fail.

However, SMSP says there is no question of paying royalties.

Local radio says some tribes are prepared to restart work tomorrow.

The SMSP leadership has told the local newspaper that it questions the role of the tribe's advisors who reportedly include a former French secret service agent.

The Ouaco site yields nearly one million tonnes of ore a year for export to South Korea.