Home  Community Economic Benefits
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ECONOMIC IMPACT PROGRAM: PATH TO THE PLANTS'S VIABILITY
The North Plant represents the long awaited fulfilment of the promise of true socio-economic growth in the Northern Province of New Caledonia.
Approximately 45,000 people, the majority of whom are Kanak, reside in the Northern Province. The Southern Province, in comparison, has a population of over 165,000, the majority of which are of European origin and 120,000 of which reside in the capital Noumea and its surrounding areas. Although nickel has for a long time been exploited in the North mines, the only existing treatment plant is in the South on the outskirts of Noumea, and a second treatment plant, owned by the Vale-Inco group, is being planned in Goro (also in the South).
This need for economic rebalancing, and its achievement through the creation of the Koniambo Project, forms the foundation of the Noumea Accords signed in 1998 by the country’s two major political forces.
It must be highlighted that even in the less developed Northern Province there is no extreme poverty, illiteracy or major lack of public infrastructure such as health care or education. On the contrary, the quality of life of its inhabitants is far superior to what could be expected of an isolated island in the South Pacific. In fact, the majority of New Caledonians consider themselves as part of a highly developed nation, and take pride in the social security systems and infrastructures supported by the French government.
Consequently, the socio-economic advantages expected by the Koniambo Project take the form of a direct improvement of the quality of life and level of revenue of the inhabitants of the Northern Province, who for a long time have been forced to seek employment in the capital due to lack of local development. The short-term expectations mainly include contract employment opportunities for the local residents of the VKP (Voh Koné Pouembout) zone accommodating the plant.
During the construction phase, the needs of the Project cannot be fully met by local labour or the operational capacity of existing local contractors. This will necessitate the import of labour (including foreign workers) and building contractors outside the local zone. Nevertheless it remains necessary to propose training for local residents interested in working on the Project in order to ensure maximum employment of qualified local workers.
The Project will also bring about a sharp population increase within the VKP zone. In the short term, the population will peak during the construction phase however a good portion of the figure will remain during the exploitation phase.
Demographic growth will continue, with a doubling of the current population within 15 years, to culminate in 30,000 inhabitants within the VKP zone, currently containing 10,000. This increase in the population will have both advantages and drawbacks. From a purely economic point of view, the effect will be a positive one through the additional goods and services that will be made available. However, taking into account quality of life, many people may not see this growth in such a positive light. This could also lead to undesirable social consequences. Our commitment is to guarantee that the positive impacts outweigh the negative.
Taking into account the strong social and cultural values of the Melanesian community and their stated desire to maintain traditional identities and ways of life, purely economic improvements cannot automatically satisfy the needs of the vast majority of the Melanesian tribal population affected by the negative social impacts of the project. Our economic impact must be ensured beyond simply providing employment and contracts to local workers. We must also assist the local inhabitants of the Northern Province in reaching their objective of maintaining a traditional way of life, despite the inevitable changes that will occur in the wake of the project, and at the same time offering new opportunities, especially to the younger generation.
To reach this objective, the Koniambo Project will supervise the establishment of social, economic and environmental improvements, particularly in the more rural tribal populations. This will help in achieving the promised economic rebalancing in regards to the Southern Province.
Taking into account that the Northern Province foresees development of its other mineral resources, the Koniambo Project will serve as a model for the optimisation of lasting economic development that maintains respect for traditional modes of life.
OUR PROGRAM IN BRIEF
Our main objective in this program is to guarantee that the economic, social and environmental advantages of the Project reach as widely as possible the population of the Northern Province, in particular the tribal communities within the VKP zone.
As much as possible, and in association with our partners, suppliers and sub-dealers, we will conduct the Project in a manner so as to ensure:
- Optimisation of local business development potential
- Optimised use of local resources and services
The community will be informed of development opportunities proposed by the Project and assisted in identifying the commercial resources appropriate to the population’s aspirations, as well as in the development and exploitation of its resources, thus establishing a lasting social fabric of industries.
Potential new business opportunities will be supported by technical and financial help; through continuous long-term assistance in technical and commercial management to ensure their success and long-term viability.
The lessons learned and experience gained through similar programs led by the Northern Province and various government bodies will be attentively considered.
The Project will be actively seeking various opportunities to establish a solid partnership in order to optimise our efforts towards lasting economic development.
ENCOURAGING THE SET-UP OF LOCAL BUSINESS
We will encourage and assist in the setting up of local businesses by linking the needs of the Project to local resources and initiatives within the VKP zone, with the participation of tribal communities. These new potential businesses could seize lasting opportunities to diversify and respond to the needs of the expanding local population and of developing economic sectors such as tourism. All these activities should be supported through training and continued assistance in the areas of small business management and administrative competence.
A significant example: 37 local businesses involved in the excavation program.
For its major excavation work destined to accommodate the Vavouto industrial site, KNS chose to incorporate into the construction zone thirty-seven local businesses that were given construction control work to the level of 1 million m3. Four existing small companies and thirty-three new entities were thus able to invest around 1.2 billion francs for purchasing the necessary equipment (trucks, hydraulic spades, compactors...) that is, forty-one pieces of machinery acquired on 30 month loans allocated by KNS.
The businesses were free to choose their materials, suppliers and financing organisms. The Chamber of Trades and Crafts also proposed free management training.
The totality of these operators will be called upon to play an important role, in future, to respond to the expectations manifested in this area on the part of the community as well as investors who the construction of the plant brings to the area.
Encouraging and assisting in the setting up of lasting community development programs is a way to improve the socio-economic conditions and quality of life of the population, particularly in the tribal communities of the VKP zone. Adequate programs will be initiated, in collaboration with the Northern Province departments, in order to develop within the tribal zones other economic potentials including the craft industry, cultural and eco-tourism, agroforestry and other industries.
Nurseries and grain gathering: strongly supported initiatives
The revegetation department will mainly be calling on local initiatives to conduct its program. An Oundjo company, supported by KNS supervisors, has in this way specialised in the gathering of grains from rare endemic species whilst four other teams, based in Poya and Kaala-Gomen, insure the supply of more common grains under various economic structures (GDPL, individual business, association…).
Increasingly ambitious yearly contracts are passed to meet the department’s growing needs.
KNS’s presence has also led to the specialisation in endemic plant species of nurseries in the area. They’ve recently regrouped themselves as GIE, Rev’nord, whose professionalism is now very well recognised.
Other companies are participating in the gathering of young plants, in forest plantation and even in the production of grains from seed fields.
An entire professional sector is being put in place, with support from the technical departments of the Northern Province and research bodies, for a revegetation program in line with the entire duration of the mine’s exploitation phase.
The Project’s intention is thus to bring to fruition a program for lasting community development (Programme de Développement Communautaire Durable) as part of a tripartite effort; in partnership with the community (primarily the tribal communities within the VKP zone), with the political forces of the Northern Province and local and international NGOs.
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