Orion Critical Mineral Consortium, a $1.8bn mining fund backed by the US and Abu Dhabi, is evaluating a purchase of Eramet's 37 per cent stake held by the Duval family. The French government owns 27 per cent of the miner, making this potential deal a significant geopolitical move in securing critical mineral supply chains amid rising tensions over China's dominance in metals.

Eramet faces mounting challenges after Indonesia slashed its nickel mining quota and the company outlined plans to raise €500mn to stabilise its finances. The governance crisis deepened when chief executive Paulo Castellari was fired after eight months, followed by finance boss Abel Martins-Alexandre's ouster. Chair Christel Bories acknowledged the "deteriorated financial situation" while confirming all fundraising options remain open.

The fund previously acquired a 40 per cent stake in Glencore's copper and cobalt projects in the Democratic Republic of Congo, aligning with Washington's push to strengthen mining partnerships. Orion CMC targets projects with existing operations or those near production to secure supply chains for technology, energy and defence industries.

French officials have signaled openness to new investors, with Bories noting strong international interest from sovereign wealth funds and industrial companies seeking to secure critical raw material supplies. The potential transaction represents another step in allied nations' efforts to diversify away from Chinese-controlled mineral sources.