Sibanye-Stillwater, a Johannesburg-based precious metals producer, is exploring New Caledonia’s Prony Resources as a potential supplier of nickel for its battery-grade material production at the Sandouville plant in France. The company is also considering Indonesia as another source for mixed hydroxide precipitate (MHP), a crucial material for electric vehicle batteries.
Prony Resources, which operates a nickel mine and hydrometallurgical processing plant, has been seeking investors amid its struggles. However, Sibanye’s spokesperson, James Wellsted, clarified on Tuesday that the company is not looking for acquisitions but is focused on securing feedstock for its planned Sandouville conversion. The project aims to shift the plant towards processing battery-grade nickel as part of the company’s push into green energy.
A team from Sibanye is currently in New Caledonia to evaluate Prony as a supplier, especially given Prony’s existing contract with Tesla to supply MHP for electric vehicle batteries. Meanwhile, local media reports suggest advanced talks between Sibanye and Prony, though Sibanye has yet to confirm any formal acquisition discussions.
New Caledonia’s nickel sector has faced significant challenges this year, with operations halted at Prony since May due to unrest in the French-controlled territory. Prony declined to comment on the situation.
