✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

UPDATE 1-Mining suspended in cyclone-hit New Caledonia as people seek shelter

Published 10/04/2017, 05:07 pm
Updated 10/04/2017, 05:10 pm
© Reuters.  UPDATE 1-Mining suspended in cyclone-hit New Caledonia as people seek shelter
ERMT
-
GLEN
-
VALE3
-

* Category three storm hits New Caledonia

* French nickel firm suspends mining, but keeps smelters going

* The cyclone alert was widened on Monday (Updates weakening forecast, adds nickel mining impact, quote)

By Charlotte Greenfield and Tom Westbrook

WELLINGTON/SYDNEY, April 10 (Reuters) - Cyclonic winds and heavy rain buffeted New Caledonia on Monday, prompting residents of the French South Pacific territory to seek shelter and halt mining of nickel, its most important export.

Cyclone Cook hit the main island at almost the same time as high tide, packing winds of up to 200 kph (124 mph), bringing down coconut trees to block roads and forcing residents to seek shelter indoors.

"Right now we are in the eye of the storm, it is calm, but before the wind was strong and the rain was heavy," David Sigal told Reuters as he sheltered in the town hall of Poindimie, about 50 km (31 miles) north of where the storm hit land.

Floods, and waves as tall as 10 metres (33 feet), were also forecast by weather authorities.

"The threat to New Caledonia is very serious," the meteorological service said in a cyclone alert.

The storm hit land late on Monday afternoon as a Category Three storm, said Virgil Cavarero, a forecaster at Meteo New Caledonia, below the destructive Category 4 predicted earlier, which would have been a level off the most dangerous wind speed.

Authorities widened their cyclone alert on Monday, however, warning residents nearly everywhere in the archipelago to seek shelter before evening.

Nickel group Societe Le Nickel, a subsidiary of French conglomerate Eramet ERMT.PA , has suspended mining at its five locations in New Caledonia, though smelting operations continue at a reduced level in the capital, Noumea, the firm said in a statement emailed to Reuters.

New Caledonia is one of the world's largest sources of nickel, and mining and metals processing plays a major role in its economy. Its two other main nickel producers, Glencore Plc GLEN.L and Vale VALE5.SA , were not immediately available for comment, however.

Cyclone Cook, tracking southward, is predicted to pass within 50 km (31 miles) of Noumea during the night. Strong winds, heavy rain and rain are forecast to batter the 400-km (250 mile) length of the main island and smaller islands nearby.

As a precautionary measure against the cyclone, none of the roughly 100 guests staying at the packed hotel Le Lagon, in south Noumea, will be allowed to leave in the evening, said manager Emilie Coste.

After passing through New Caledonia, Cyclone Cook is forecast to gather strength and hit flood-soaked New Zealand, as the threat from recent Cyclone Debbie dissipates.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.