New Caledonian nickel firm KNS awaits new investor after furnace shutdown
PARIS, Sept 3 (Reuters) -Talks with potential buyers for Glencore's GLEN.L stake in Koniambo Nickel SAS (KNS) are continuing after the loss-making New Caledonian nickel producer shut down its furnaces over the weekend, KNS said on Tuesday.
KNS, part of a struggling New Caledonian nickel industry, stopped its mine and plant operations in March after commodity group Glencore decided to sell its interest. Glencore agreed to pay for workers' salaries and for the furnaces to be kept hot until the end of August.
The switching off of the furnaces took place over the weekend and means most of the 1,200 staff have been laid off, Alexandre Rousseau, vice president and spokesperson at KNS, told Reuters.
KNS had launched a redundancy plan in late July in the absence of a firm offer for Glencore's stake ahead of the end-August deadline.
Reiterating that three parties were interested in a potential investment, Rousseau said two of them were holding more detailed discussions with Glencore and aimed to visit KNS' site in northern New Caledonia in the coming weeks.
A Glencore spokesperson said KNS remained in care and maintenance following the shutdown of the furnaces, declining to comment further.
The New Caledonian nickel sector has been dealt a further blow by unrest since May in the French-controlled southern Pacific territory.
French mining group Eramet ERMT.PA said its local subsidiary SLN continued to operate at minimal capacity. The territory's other nickel processor, Prony Resources, has suspended its operations.
Reporting by Gus Trompiz
Editing by Christina Fincher
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