French mining company Eramet announced on Tuesday that it is significantly reducing its production targets for two of its key mines.
The Moanda manganese mine in Gabon and the Weda Bay nickel mine in Indonesia, both world-leading operations, will see a decrease in output due to market conditions and regulatory changes.
The company attributed the decision to a decline in the manganese market, primarily driven by a decrease in Chinese steel production.
Additionally, Eramet received a smaller-than-expected permit allowance for its Indonesian nickel mine.
As a result, the Moanda mine will temporarily suspend ore production for at least three weeks.
The annual production target for manganese ore from Moanda has been revised downward to between 6.5 and 7.0 million metric tons.
In Indonesia, the Weda Bay Nickel operation’s 2024 target for external marketable nickel ore has been reduced to 29 million wet tons from its previous estimate of 40 to 42 million.
Eramet noted that the financial impact of the production cuts is expected to be mitigated by higher ore premiums resulting from restrictions on domestic supply in Indonesia.
The company will provide a more detailed update on its third-quarter sales performance on October 24th.