Thibault Michel, a researcher at the French Institute of International Relations (Ifri), provides insight into the crisis facing the nickel industry in New Caledonia, which is an essential component of the archipelago’s economy. This crisis is attributed to the competition from Indonesia and the mining strategy of Beijing, which have put pressure on New Caledonia’s nickel industry.
The nickel industry in New Caledonia, which accounts for a significant portion of the archipelago’s economy, is facing challenges due to various factors. One of the key factors contributing to this crisis is the competition from Indonesia, which has ramped up its nickel production in recent years. This has led to a decline in nickel prices and a decrease in the competitiveness of New Caledonia’s nickel industry.
In addition to the competition from Indonesia, New Caledonia also faces challenges due to the mining strategy of Beijing. China, a major player in the global nickel market, has been acquiring nickel mines around the world as part of its strategic push to secure resources for its industrial needs. This has further intensified the pressure on New Caledonia’s nickel industry, as China’s aggressive mining strategy has disrupted the global nickel market.
The crisis facing the nickel industry in New Caledonia has significant implications for the archipelago’s economy, which heavily relies on the nickel sector. The decline in nickel prices and the increased competition from Indonesia and China have put pressure on New Caledonia’s economy, leading to job losses and economic instability. This has highlighted the vulnerability of the archipelago’s economy to external factors.
In order to address the crisis facing the nickel industry in New Caledonia, Thibault Michel suggests that the local authorities need to take urgent steps to strengthen the competitiveness of the sector. This includes investing in innovation and technology to increase productivity and reduce production costs. Additionally, there is a need for closer cooperation between the government and industry stakeholders to develop a sustainable long-term strategy for the nickel industry.
Overall, the crisis facing the nickel industry in New Caledonia is a complex issue that requires a multi-faceted approach to address. The competition from Indonesia and the mining strategy of Beijing have put pressure on the archipelago’s nickel industry, leading to economic challenges. By implementing strategic measures to strengthen the competitiveness of the sector and foster collaboration between stakeholders, New Caledonia can work towards overcoming the crisis and ensuring the sustainability of its nickel industry.
