After the closure of the furnace, KNS, a new Caledonian nickel company, is looking for a new investor.

KNS reported on Tuesday that talks with potential buyers of Glencore's Koniambo Nickel SAS stake are continuing, after the New Caledonian Nickel producer shut down their furnaces at the weekend.

KNS, a part of the struggling New Caledonian Nickel industry, halted its mine and factory operations in March, after commodity group Glencore sold its interest. Glencore agreed that it would pay the salaries of the workers and keep the furnaces hot until August.

Alexandre Rousseau is the Vice President and spokesperson for KNS. He said that the switch-off of the furnaces occurred over the weekend, and most of the 1,200 employees have been laid off.

KNS launched a redundancy program in late July, in the absence a firm offer to buy Glencore's share before the deadline of end August.

Rousseau reiterated that three parties are interested in an investment. He said two were having more detailed discussions Glencore, and they hoped to visit KNS’ site in northern New Caledonia within the next few weeks.

Glencore's spokesperson declined to elaborate on the matter, saying that KNS was still in maintenance and care following the shutdown of furnaces.

Unrest in the French-controlled territory of southern Pacific has dealt another blow to the nickel sector in New Caledonia since May.

Eramet, a French mining company, said that its local subsidiary SLN continues to operate at a minimal capacity. Prony Resources has ceased operations as the territory's nickel processor.

(source: Reuters)