26 Nov 2013

New Caledonia leaders call for international nickel cartel

6:10 pm on 26 November 2013

New Caledonian political leaders say they would like to create a nickel cartel with Indonesia and the Philippines similar to the oil producing countries' OPEC.

New Caledonia's vice-president, Gilbert Tyuienon, and its Congress president, Roch Wamytan, discussed the issue with Indonesian leaders in Jakarta amid concern over the drop in the nickel price.

The two countries reportedly hold about 80 percent of the world's ore supply, with Indonesia supplying Chinese smelters whose growing output has lowered the nickel price way below the production costs in New Caledonia.

The New Caledonian leaders say there was interest in Jakarta in suggestions to regulate the nickel market along the lines of the rubber and tin market.

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