Deteriorating Finances Prompt Eramet to Consider Selling Indonesia's Giant Nickel Mine
Jakarta, CNBC Indonesia - Eramet’s largest shareholder has hired bankers and is considering selling its stake in the troubled French mining group.
Citing a Financial Times report, the Duval family has appointed investment bank Lazard to explore options for their 37% ownership in Eramet and to advise them ahead of the company’s imminent capital raising.
In February, Eramet outlined plans to raise €500 million this year to stabilise its “deteriorating financial situation”. Its shares have fallen nearly a fifth since early January, reducing its market capitalisation to around €1.4 billion.
With operations spanning nickel mining to manganese ore, Eramet has been hit by a series of setbacks in recent months, including falling prices and a fire at its mineral sands facility in Senegal.
The company recorded a loss of nearly €500 million in 2025, while net debt rose 50% to almost €2 billion.
The firm has also been embroiled in a governance crisis. Its board sacked chief executive Paulo Castellari in February, just eight months into the job, citing differences in “operational methods”.
Shortly afterwards, Eramet suspended chief financial officer Abel Martins-Alexandre. Meanwhile, Chair and former CEO Christel Bories has been reinstated temporarily to the top position.
The Duval family has been Eramet’s main shareholder since the mining company took over Aubert & Duval in 1999. In 2022, Eramet sold the jet fighter and submarine parts maker to a consortium backed by Airbus and engine maker Safran.
The French government is Eramet’s second-largest shareholder, with a 27% stake, and alongside the Duval family has in principle approved the capital raise. This move, to be put to shareholders at the end of May, will dilute the family’s holding if they do not inject more cash.
According to two sources, they may struggle to find a buyer for the stake. This is because any industry rival might prefer to acquire the company in full.
As part of its recovery plan, Eramet said it is exploring the possibility of selling assets.
While still serving as chief financial officer in December, Martins-Alexandre outlined plans to sell Eramet’s stake in one of the world’s largest nickel mines and warned that the company needed an “immediate equity injection”. This was based on an internal memo.
The memo stated that the Weda Bay mine in Indonesia “must be a clear candidate for sale while we have the opportunity to engage in a credible sales process. The sale should be executed with Eramet’s ‘deteriorating’ balance sheet,” the memo said. Martins-Alexandre’s priorities for early 2026 included securing a “binding offer” for the mine.
Eramet declined to comment on potential changes in ownership or details surrounding the Weda Bay mine. The Duval family also declined to comment.
The company said it is considering various options for various assets as part of its review, but could not provide details on ongoing discussions or specific potential transactions.
According to several sources familiar with the situation, the governance crisis at the mining company appears to be part of a broader cultural clash. They added that the actions taken against Castellari and Martins-Alexandre by the board have been linked to their decision to draw down funds from a revolving credit facility without first informing board members and shareholders. This caused tensions, although the executives had no obligation to notify them beforehand.
As reported by the Financial Times, Castellari had voiced concerns about governance and potential financial mismanagement when he was sacked.