It is a joint venture between local SMSP — Société Minière du Sud Pacifique — and Swiss mining giant Xstrata for an estimated capital investment of some $3.8 billion.
SMSP, the local partner, holds a 51 percent stake in the project and has indicated it would also provide its full backing to ensure it is brought to completion.
But in September 2008, Lehman Brothers and HSBC, two of the three banks involved, decided to pull out, citing the world financial crisis as their main motive.
The new deal was signed last week between SMSP Chairman André Dang and the heads of two French banking groups, Financière Océor — a subsidiary of French group Caisse d’Epargne — and BRED, or Banque Populaire, which has also recently opened offices in neighboring Vanuatu.
It is a loan totaling some 150 million euros, or $212 million, over a period of twenty years, with a grace period of five years.
Dang told a press conference on Wednesday last week he was particularly grateful to the two bankers for their support “in these most difficult times”.
He also stressed that the project was never derailed and would be completed as scheduled.
“One billion U.S. dollars have already been invested here. This means 935 persons employed,” he said.
Dang also recalled that soon after the September defection from the former bankers, another 25-year loan had been contracted, fully guaranteed by Xstrata, for a total of some $550 million, with a grace period of six years.
The Koniambo project is also benefiting from French tax holidays in the tune of $220 million. Another loan is also anticipated to take place later this year, for a total of up to $200 million, Dang announced.
The Koniambo project is also highly political: it is perceived to be an essential tool for an “economic rebalancing” between the highly populated and affluent Southern province (where the capital Nouméa is located) and the less favored Northern part of New Caledonia.
The Koniambo project was originally scheduled to be completed end 2011 or early 2012.
