The European Commission and the Government of New Caledonia have signed a memorandum of understanding (MoU). The agreement establishes a strategic partnership on sustainable raw materials value chains.
Under the MoU, the European Union (EU) and New Caledonia will closely cooperate in five key areas.
Both will develop projects of common interest and facilitate access to finance to attract investments. They will also mobilise relevant EU, member state, and financial institution instruments, alongside private investment.
The EU and New Caledonia will also work to ensure the territory’s mineral sector contributes to sustainable and inclusive economic growth. They will mobilise support for the infrastructure required for development and collaborate on research and innovation.
The pair will jointly develop a roadmap in consultation with all EU member states, the European Investment Bank, industry, and partners. It will outline concrete actions to put the strategic partnership into practice.
Executive Vice President for Prosperity and Industrial Strategy Stéphane Séjourné says Europe needs reliable partners to diversify its critical raw materials supply chains.
“New Caledonia has the resources, industrial expertise, and know-how to play a strategic role in this effort,” Séjourné says.
Opportunities in New Caledonia
New Caledonia is one of the world’s leading nickel producers, accounting for around 10% of the world’s reserves and 3.1% of global production as of 2024.
The EU-New Caledonia MoU highlights the territory’s broader mineral potential and its privileged status as an overseas country and territory (OCT).
This news follows a 20-year MoU signed by Latrobe Magnesium (ASX:LMG) and Société Le Nickel (SLN), part of the French multinational Eramet (EPA:ERA). The agreement aims to convert waste from SLN’s nickel operation into magnesium metal in the US.
Latrobe will provide the US project’s primary feedstock of ferronickel slag. The slag will be shipped from New Caledonia through the Port of Charleston to the proposed site, which Latrobe has identified and is negotiating to secure.
Write to Aaliyah Rogan at Mining.com.au
Main image: Geoscience World
