Impact on the economy

With a capital cost of more than 3.2 billion US dollars (en approximately more than 320 billion Pacific Francs), Vale Inco Nouvelle-Calédonie is one of the largest mining projects in the world. The project is of major importance for New Caledonia. It is already generating economic benefits during its construction phase and these will continue in the long term, from the moment mining begins due to:

• The creation of some 2,700 direct, indirect and secondary jobs during the mining phase,
• The significant tax revenue resulting from mining activity, in spite of partial tax exemptions, under the Girardin Act,
• Related activities generated by the project,
• The extraction process developed by Vale Inco, which will make it possible to increase the value of many of New Caledonia’s low nickel content laterite deposits which up until now, had no commercial value, and
• Nickel and cobalt exports which will contribute to rebalancing the balance of payments in New Caledonia, a country which relies heavily on imports.

Serving as an example

Vale Inco Nouvelle-Calédonie is the first project with international scope to be developed in New Caledonia.  It will therefore serve as an example. The way in which it is constructed and put into operation will influence the perception overseas investors have of the country and decisions they may make about investing in further projects here, in both the North and South.

New Caledonia therefore has an opportunity to develop world-class expertise and position itself as a partner of choice for overseas investors.  The effect such a reputation could have on the whole of New Caledonia, although difficult to predict exactly, can only be beneficial.