Eramet Plans Increased Manganese Output from Gabon and Lithium from Argentina to Boost Earnings
French mining group Eramet has announced plans to increase manganese production in Gabon and lithium output in Argentina as part of efforts to bolster its finances, which have been affected by falling profits and rising debt.
The company, facing pressure from weak metal prices, production delays, and the buyout of its Argentine lithium partner, outlined additional measures in early December following cuts to capital expenditure.
Eramet aims to boost core earnings before interest, tax, depreciation, and amortization (EBITDA) by €130 million to €170 million within two years. This growth will be supported by improvements to rail infrastructure in Gabon, allowing for increased volumes of transported manganese ore.
In addition to the EBITDA target, Eramet expects a further profit increase from the ramp-up of lithium production in Argentina, with full capacity projected by the end of 2026.
The company has secured a waiver on its December 2025 debt ratio covenant from its lending group, ensuring access to its undrawn €935 million credit facility.
Efficiency measures, including reduced capital expenditure, are expected to enhance free cash flow by €60 million to €70 million by year-end. Eramet is also evaluating strategic and financial options to accelerate performance and reduce leverage.
While confirming its 2025 production volume targets, Eramet noted that markets are likely to remain pressured by slowing industrial demand in China and global economic uncertainty. However, the company expects conditions to stabilize in 2026 as supply and demand gradually rebalance.
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