Eramet lowers 2024 manganese, nickel production targets

For its Gabonese subsidiary, Comilog, the target for manganese ore production and transport is now set at 6.5-7 million tonnes, down from the previous 7-7.5 million tonnes.

The sharp decline in carbon steel production in China this summer, along with a surge in low-grade ore supply from South Africa, has contributed to an oversupply in the manganese ore market. This has put pressure on sales and prices for high-grade manganese, especially in Gabon, where Eramet has now suspended mining operations at its Moanda mine for at least three weeks, pending further market developments.

Similarly, for its Indonesian joint venture PT Weda Bay Nickel (PT WBN), the nickel ore output target is slashed to 29 million wmt, as compared to the earlier goal of 40-42 million wmt. The miner attributes the cut to the fact that the latest permit from Indonesian authorities allows for only 32 million wmt of nickel ore sales in 2024, far below the 44 million wmt the company had aimed for.

Despite this, PT WBN expects its financial performance to hold steady this year, given higher ore premiums from a restricted domestic supply of the base metal.

Also, Eramet and its partner, Tsingshan, a Chinese leading stainless producer, plan to seek revisions to the operating permit for 2025 and 2026 to support production growth in line with their environmental and mining plans.

Written by Adele Pan, panqinjie@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com