France’s Eramet significantly reduced its 2024 production targets for its manganese mine in Gabon and its nickel mine in Indonesia, citing a weakened manganese market and a smaller-than-anticipated permit allowance in Indonesia.
The Moanda mine in Gabon and the Weda Bay mine in Indonesia, both among the world’s largest producers of their respective minerals, have been key drivers of Eramet’s growth, particularly as its long-standing nickel operations in New Caledonia have struggled with losses and social unrest.
In July, Eramet raised its full-year profit guidance due to rising manganese prices. However, the company now reports a sharp decline in the manganese market, driven by reduced Chinese carbon steel production—where manganese is primarily used—and an influx of low-grade manganese after earlier price hikes.
Eramet’s subsidiary, Comilog, will suspend ore production at the Moanda mine for at least three weeks, with the timeline subject to market conditions.
The company revised its 2024 production target for Moanda to 6.5–7.0 million metric tons, down from the previous 7.0–7.5 million tons.
In Indonesia, Eramet’s joint venture with Chinese group Tsingshan, PT Weda Bay Nickel, received a revised production allowance from the Indonesian mines ministry.
The updated target is 29 million wet tons of marketable nickel ore for 2024, down from the original estimate of 40–42 million tons.
Despite the reduction, Eramet expects the financial impact to be partially offset by higher ore premiums due to restricted domestic supply. The company will release a third-quarter sales update on October 24.
