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Tesla-Backed Nickel Miner Cuts Output After Waste Dam Leak

  • New Caledonia’s Goro reported release of salt-laden liquid
  • Metal gains more than 7% in first minutes of London trading
The nickel mine of Goro in southern New Caledonia in 2015.
The nickel mine of Goro in southern New Caledonia in 2015.Source: Fred Payet/AFP/Getty Images
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The troubled Goro nickel mine -- one of the world’s largest deposits, which is part-owned by Trafigura Group and backed by Tesla Inc. -- has been forced to reduce production to address a leak from its tailings dam. 

Goro, which is located in the South Pacific territory of New Caledonia, reported a “limited release of salt-laden liquid” after heavy rains in August, a spokesperson for owner Prony Resources said by email. Corrective measures required by local authorities mean that nickel output will be reduced in the fourth quarter, the company said.