New Caledonia’s SLN nickel company says it wants to lower production costs by a third within three years to ensure the business survives.
The commodity slump of late has incurred SLN onging losses of almost $1 million a day, prompting a restructure which called for a longer working week and job cuts.
SLN said its target was to reduce the cost of producing one pound of nickel from $6 in 2015 to $4 in 2020.
To achieve this, the workforce was to be cut from 2000 to 1700 within three years, while changing work practices.
This would entail changes to management and reducing the teams from five to four, who would then be made to increase their hours to 42 a week.
SLN has survived the downturn courtesy of a $390 million advance from its parent company, Eramet, and a loan of $240 million from the French state.
SLN’s restructure came amid a review by Vale of Brazil, which was reviewing the viability of its nickel plant in the south of New Caledonia.
The two plants were the territory’s dominant private sector employers.
