Sibanye-Stillwater is evaluating New Caledonia’s Prony Resources as a potential nickel supplier for manufacturing battery-grade materials at its Sandouville plant in France. The Johannesburg-based precious metals producer is also considering Indonesia as an additional source for mixed hydroxide precipitate (MHP) needed for electric vehicle batteries, according to spokesperson James Wellsted.
Prony Resources is part of New Caledonia’s struggling nickel industry and has been actively seeking investors for its operations, which include a nickel mine and a hydrometallurgical processing plant. While Prony has expressed a willingness to sell a majority stake, Wellsted clarified that Sibanye is not currently pursuing acquisitions.
Sibanye is working on plans to convert the Sandouville plant to process battery-grade nickel as part of its green energy initiative. Securing a steady feedstock supply is essential for this transition. “Part of the feasibility is trying to identify where you’re going to get the MHP, which is the feedstock for battery metal production at Sandouville,” Wellsted noted.
A team from Sibanye is currently in New Caledonia to assess Prony as a potential supplier. Prony produces MHP, an intermediate nickel product suitable for battery supply chains, and has previously announced a contract to supply electric vehicle manufacturer Tesla.
Local media outlet Les Nouvelles Caledoniennes reported that Sibanye is in advanced talks to acquire Prony, citing sources close to the discussions. This report followed comments from Sonia Backes, head of New Caledonia’s southern province, who indicated that a potential investor was in discussions with Prony.
However, a spokesperson for Prony declined to comment on the situation. The New Caledonian nickel sector has faced significant challenges this year, particularly due to unrest in the French-controlled territory, which has led to the suspension of Prony’s operations since May.
