Mining strategy for New Caledonia: Natural resource curse?

Abstract

The mining industry is usually characterized as a curse, also known as the "paradox of plenty". Today, New Caledonia bears the brunt of the falling price of nickel, the end of the construction of two new nickel plants and the economic downturn. However, New Caledonia, which is supposed to have 25% of the world’s deposits of nickel, attempted to overcome this curse. The mining industry was supposed to secure economic self-sufficiency and pay for a viable independence. This is a common belief in nationalism for natural resources. The country and its provinces tried to build a mining strategy based on added value and, for some, government majority equity in local companies.