The French government will increase its stake in struggling miner Eramet to up to 49 percent, becoming the company's top shareholder. Currently holding 27 percent, the state will subscribe to all allotted shares in a planned €500 million capital raising in the fourth quarter of 2026. This move will dilute the Duval family's 37 percent holding, effectively ending their status as majority shareholders.
The capital injection aims to stabilize Eramet's "deteriorated financial situation" and protect France's access to critical minerals. Eramet operates nickel mines in Indonesia and concessions in New Caledonia, plus lithium and manganese projects in Argentina, Gabon, Senegal, and the US. The group recently reported a 2025 loss and cut its Indonesian nickel quota.
French Finance Minister Roland Lescure emphasized Eramet's strategic importance for European industries seeking to counter China's dominance in critical mineral processing. The state's offer outbid other external investors, including the Orion Critical Mineral Consortium, due to speed and strategic interests. While other investors could potentially join later, the French stake increase makes this less likely in the short term.
Eramet also faced a governance crisis earlier this year, with the board firing CEO Paulo Castellari just eight months into his role.
Source: Financial Times Companies · Summarized by HeadlinesBriefing