Page 15 - IB April 2023

New Caledonia New Caledonia

political status until the end of a 25-year transition. This for renewable energy production. We can’t keep using coal
decolonisation process culminated in three referendums to generate electricity because the market will eventually
between 2018-2021, where a majority of voters said ‘No’ to say that our nickel is dirty. We’ve been living in an economic
independence. But the third vote was controversial. Most in- bubble, and the bubble may be about to burst.”
dependence supporters stayed away from the polls, the FLNKS
and its allies cried foul, and the country remains divided. A Economic reform
rupture of dialogue with the French government has only just Another key feature of the Noumea Accord was the creation
been bridged, with bilateral talks in Paris in mid-April. of new opportunities for young New Caledonians to access
So what’s been achieved in 25 years, and what comes next? skills, training and education.
Leaders like Roch Wamytan celebrate the progress since
Lessons from the Noumea Accord 1998 – even though many young Kanak are still disadvantaged
Roch Wamytan, President of New Caledonia’s Congress, in the education system, despite reforms in curriculum and
argues there have been many advances under the Noumea staffing.
Accord: “After 25-30 years, we are managing our political “In the past 25 years, we’ve been able to train a number of
institutions in an effective way. If New Caledonia were to be young technicians, engineers, even a couple of doctors,” he
independent tomorrow, the political leadership is already said. “But this is a nowhere near enough, as we have a serious
there.” lack of local doctors. There’s also a problem that some train-
The long-time independence leader notes however that ing programs are also open to the ‘metro’ children of French
“there are also many negatives after 25 years. Kanak culture officials, rather than just New Caledonian citizens. So, there’s
and identity is not fully integrated into our institutions and been progress, but when we follow the French curriculum, it
many sectors of society. The voices of our chiefs and the affects us negatively.”
councils of our customary regions are not sufficiently taken Under President Louis Mapou, the Government of New Cale-
into account.” donia is looking to open up education and training opportuni-
In the aftermath of the 2020-21 COVID pandemic, many ties in neighbouring countries, rather than France.
New Caledonians are facing tough times amidst rising cost of “When President Mapou and I were in Suva last July for the
living. The closure last month of the only daily newspaper Les Pacific Islands Forum, we were very interested in our visit to
Nouvelles Calédoniennes highlights current commercial (and the medical school in Fiji,” Wamytan said. “We would like to
political) pressures. But the country’s key resource – nickel explore the possibility for New Caledonian students to study
ore – remains a crucial asset, and the last decade has seen there, as Fiji is just next door.”
expanded sales for ore and nickel metal, with new markets in The Mapou government has started to undertake difficult
China and Korea. structural changes that previous governments were never will-
Roch Wamytan highlights the central economic role of ing to take on, especially around fiscal reform. The 54-mem-
three nickel smelters across the country, run by Koniambo ber Congress currently has an “islander majority”, uniting 26
SAS, Prony Resources and Société le Nickel (SLN): “There is independence supporters and three members of the Wallisian
progress in the economic sphere, with more Kanak involved party Eveil océanien (EO). This alliance passed an annual
in different economic sectors – especially in the three nickel budget in March, and has begun the fraught process of trying
smelters in the north, south and in Noumea. Not enough, for to reform debt-ridden public funds, like the RUAMM health
sure, but better than it was.” insurance program.
Alcide Ponga is the acting president of the anti-indepen- Congress President Wamytan said: “All the anti-indepen-
dence party Rassemblement-Les Républicains, and Mayor of dence politicians, they have friends in the business communi-
Kouaoua in New Caledonia’s Northern province. As director of ty to look after – we don’t have that, so we can act. We have
external affairs with Koniambo SAS, he says, “the question of resources here, but it takes some political courage to make
nickel has to be at the heart of economic discussion. the necessary reforms. We can’t just keep asking for money
“When the nickel industry goes well, New Caledonia goes from France.”
well,” Ponga told Islands Business. “But we all know that the
nickel industry is in trouble. The issue is not the number of Regional outreach
smelters, but whether they are profitable.” At a time of geopolitical contest between the United States
With fluctuating prices on international markets, the soaring and China, with President Macron promoting France as a
cost of energy and high labour costs, New Caledonia’s nickel “balancing force” in the Indo-Pacific region, New Caledonia is
industry faces stiff competition from countries like Indonesia. increasingly entangled in regional tensions.
SLN’s ageing Doniambo smelter in Noumea is in significant Attending his first Forum leaders meeting in Suva last year,
financial stress, reliant on loans from Paris but still needing President Louis Mapou told Islands Business: “There is no
new funding for maintenance and upgrades. doubt that France needs New Caledonia and French Polynesia
“The situation of SLN is complicated, as there are questions for its Indo-Pacific strategy, facing other major powers in the
of productivity and staffing levels,” Ponga said. “But the big region. But this is not our project – we want to integrate with
problem is the cost of energy and the call from the market our neighbours in the Pacific region.”

Islands Business, April 2023 15