Resolutions of SMSP Board of Directors

SMSP Board of Directors met in Noumea on September 7. Amongst a certain number of points that have been reviewed, two important resolutions regarding the construction of the Northern Plant have been endorsed by all its members.

The Board members reviewed details of project execution planning, execution preparedness, schedule and cost optimisation and were able to confirm that all core elements of the renewal phase had been completed in time. The Board endorsed the cost inrease and the continuity of preliminary works.

The Board members were equally able to confim that both the recent evolution of the market and the partnership signed by SMSP with the world leader of stainless steel, South Korean POSCO, had radically changed the context in which the construction of the Northern Plant takes place. By lowering down its low grade ore exports from 2.45% to 2.27%, SMSP not only secures its mines and related jobs, but also creates a financial capability allowing the company to fully play its partnership role in the construction of the Northern Plant. The processing plant in South Korea, whose start-up is scheduled in 12 months time, will generate an immediate profit that will provide SMSP with a financial capability for the construction of the Northern Plant. The Board members have therefore endorsed SMSP’s financial participation to up to 51% of the construction cost.