The protests were sparked by a proposed voting reform that would allow French residents who have lived in the country for over a decade to vote in local elections. This culminated in riots in May, leading the government to declare a two-week state of emergency. These events exacerbated the challenges faced by the New Caledonian nickel industry, particularly for processing plants already grappling with high operating costs and mounting competition from Indonesia. In an attempt to rescue the industry, the French government previously proposed a “Nickel Pact,” which would have granted up to EUR200m (US$217m) in emergency relief aid to producers. The pact was initially supposed to be passed by the end of January, but remains unsigned as political tensions have escalated, creating uncertainty about the stability of the New Caledonian nickel sector.