Eramet falls as Indonesia JV sees drastic cut in nickel production quota

Eramet

11/02/2026 10:18

** Shares of French mining and metallurgical company Eramet ERMT.PA fall 5% after its Indonesian joint venture PT Weda Bay was granted a 12 Mwmt annual production and sales quota, down sharply from the previously planned 42 Mwmt

** Eramet says the quota reflects Indonesia's efforts to sustainably manage its nickel industry, while adding it would apply for a higher quota to meet demand from local smelters and industrial facilities

** Analyst Maxime Kogge from brokerage Oddo says the restriction casts doubt on Eramet's integration strategy in Indonesia, previously thought to shield Weda Bay from cuts, and could reduce group EBITDA forecasts by 10%

** Tight financial conditions exacerbate the impact, Kogge adds, with Eramet's debt expected to reach five times its earnings in 2025, adding pressure to its already stretched balance sheet

** Eramet shares have fallen 13.9% in the last month

(Reporting by Jerome Terroy)

((jerome.terroy@thomsonreuters.com))