Jakarta, CNBC Indonesia - Eramet\u2019s largest shareholder has hired\nbankers and is considering selling its stake in the troubled French\nmining group.<\/p>\n
Citing a Financial Times report, the Duval family has appointed\ninvestment bank Lazard to explore options for their 37% ownership in\nEramet and to advise them ahead of the company\u2019s imminent capital\nraising.<\/p>\n
In February, Eramet outlined plans to raise \u20ac500 million this year to\nstabilise its \u201cdeteriorating financial situation\u201d. Its shares have\nfallen nearly a fifth since early January, reducing its market\ncapitalisation to around \u20ac1.4 billion.<\/p>\n
With operations spanning nickel mining to manganese ore, Eramet has\nbeen hit by a series of setbacks in recent months, including falling\nprices and a fire at its mineral sands facility in Senegal.<\/p>\n
The company recorded a loss of nearly \u20ac500 million in 2025, while net\ndebt rose 50% to almost \u20ac2 billion.<\/p>\n
The firm has also been embroiled in a governance crisis. Its board\nsacked chief executive Paulo Castellari in February, just eight months\ninto the job, citing differences in \u201coperational methods\u201d.<\/p>\n
Shortly afterwards, Eramet suspended chief financial officer Abel\nMartins-Alexandre. Meanwhile, Chair and former CEO Christel Bories has\nbeen reinstated temporarily to the top position.<\/p>\n
The Duval family has been Eramet\u2019s main shareholder since the mining\ncompany took over Aubert & Duval in 1999. In 2022, Eramet sold the\njet fighter and submarine parts maker to a consortium backed by Airbus\nand engine maker Safran.<\/p>\n
The French government is Eramet\u2019s second-largest shareholder, with a\n27% stake, and alongside the Duval family has in principle approved the\ncapital raise. This move, to be put to shareholders at the end of May,\nwill dilute the family\u2019s holding if they do not inject more cash.<\/p>\n
According to two sources, they may struggle to find a buyer for the\nstake. This is because any industry rival might prefer to acquire the\ncompany in full.<\/p>\n
As part of its recovery plan, Eramet said it is exploring the\npossibility of selling assets.<\/p>\n
While still serving as chief financial officer in December,\nMartins-Alexandre outlined plans to sell Eramet\u2019s stake in one of the\nworld\u2019s largest nickel mines and warned that the company needed an\n\u201cimmediate equity injection\u201d. This was based on an internal memo.<\/p>\n
The memo stated that the Weda Bay mine in Indonesia \u201cmust be a clear\ncandidate for sale while we have the opportunity to engage in a credible\nsales process. The sale should be executed with Eramet\u2019s \u2018deteriorating\u2019\nbalance sheet,\u201d the memo said. Martins-Alexandre\u2019s priorities for early\n2026 included securing a \u201cbinding offer\u201d for the mine.<\/p>\n
Eramet declined to comment on potential changes in ownership or\ndetails surrounding the Weda Bay mine. The Duval family also declined to\ncomment.<\/p>\n
The company said it is considering various options for various assets\nas part of its review, but could not provide details on ongoing\ndiscussions or specific potential transactions.<\/p>\n
According to several sources familiar with the situation, the\ngovernance crisis at the mining company appears to be part of a broader\ncultural clash. They added that the actions taken against Castellari and\nMartins-Alexandre by the board have been linked to their decision to\ndraw down funds from a revolving credit facility without first informing\nboard members and shareholders. This caused tensions, although the\nexecutives had no obligation to notify them beforehand.<\/p>\n
As reported by the Financial Times, Castellari had voiced concerns\nabout governance and potential financial mismanagement when he was\nsacked.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/deteriorating-finances-prompt-eramet-to-consider-selling-indonesias-giant-nickel-mine-1775699449", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }