Glencore Xstrata’s Koniambo: billions of dollars for a teacup of nickel

Glencore Xstrata’s $6.3-billion Koniambo nickel asset in New Caledonia was described as a “problem project” by senior management at a briefing in London on Tuesday September 10.

The company expects construction costs to hit $6.3 billion, compared with the board of Xstrata’s initial approval of $3.9 billion, which was later revised to $5.3 billion. Production this year is likely to be 4,000 tonnes of nickel in ferro-nickel. “Koniambo is going to end up a $6.3 billion project. We always knew it was a problem project,” Glencore Xstrata ceo Ivan Glasenberg said. The forecast for nickel in ferro-nickel production has been revised down, with 2015 expectations now at 55,000 tonnes, compared with Xstrata’s previous estimate of 61,000...

Published

Janie Davies

September 10, 2013

17:06 GMT

London