As can be seen above, nickel prices have been fairly stable for the last two months.
It would not matter much to most of the world if New Caledonia stopped producing
nickel. It would, however, completely ruin New Caledonia. Four years ago nickel was
$26 per pound - it collapsed to $4 by the end of 2008 and recovered to about $9 at the
end of 2009. Doubtless, New Caledonian economists and government planners have
been inspired by the grim example of the Ivory Coast and cacao, and are hard at work
seeking to minimize risk by diversifying.
It would not matter much to most of the world if New Caledonia stopped producing
nickel. It would, however, completely ruin New Caledonia. Four years ago nickel was
$26 per pound - it collapsed to $4 by the end of 2008 and recovered to about $9 at the
end of 2009. Doubtless, New Caledonian economists and government planners have
been inspired by the grim example of the Ivory Coast and cacao, and are hard at work
seeking to minimize risk by diversifying.
Planet Earth is small - a tsunami and earthquake shattering New Caledonia would
probably cost France billions of Euros. Likewise, were France hammered, New
Caledonia might well see a reduction in the subsidy.
probably cost France billions of Euros. Likewise, were France hammered, New
Caledonia might well see a reduction in the subsidy.