BVTV: New Caledonia | REUTERS

[Music] Emanuel Macon has imposed a state of emergency in new calonia a French controlled island in the Pacific after riots that have already left six dead he has sent the Army but maybe the French President should focus instead on the economic plight of a territory he has long neglected new calonia holds 5% of the global reserves of nickel a crucial component of electric vehicle batteries but in spite of rising demand the industry has been hit by over capacity worldwide prices have been cut by half in the last year and the value of new caledonia's nickel exports that's 95% of its total exports shrank by more than 30% in 2023 that was bad enough but it happened in a territory with volatile politics more than 30 years ago the French government agreed to transfer its powers over time to the local indigenous population the kaks that supposed constant involvement by Paris to keep the balance and broker compromises between the different nationalities on the island that's what didn't happen the French government has sent 1,000 troops to quell the unrest after not doing much in the last four years as the economic and political situation in new calonia was getting worse Parish should now come up with a credible economic plan in the short term to restructure the local nickel industry even as Aon is trying to lure investors to build electric batteries in France in the longer term the France government should explore ways to diversify the economy and reduce its dependence on one commodity if it doesn't do that France may have to leave a territory that gives it vast territorial Waters and a little bit of influence in a crucial strategic region of the world [Music]

Channel: Reuters

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Id: rxPQZJB_Yx0

Length: 2min 1sec (121 seconds)

Published: Mon May 20 2024