France plans to strengthen its position in Eramet through a €500 million capital increase, seeking greater influence over the mining group’s international portfolio of manganese, nickel, lithium and mineral sands assets. The company’s principal shareholders have agreed on participation arrangements for a planned rights issue, expected in the fourth quarter of 2026. The transaction remains incomplete, and Eramet has not yet received the proceeds.
French State Seeks Largest Shareholding
The French state investment agency APE, which holds approximately 27.1% of Eramet, intends to subscribe for its proportional allocation in the rights issue and acquire additional subscription rights from the Duval family’s Sorame-CEIR holdings.
The proposed structure is designed to make the French state Eramet’s largest shareholder, while keeping its effective voting rights at or below 49%. Other shareholders are also entitled to participate in the capital increase. The arrangement would expand direct state involvement in a major European mining group without giving the government an effective voting majority.
International Portfolio Covers Four Mining Jurisdictions
Eramet operates across several regions, giving France indirect exposure to mineral resources outside Europe. Its portfolio includes manganese operations in Gabon, nickel assets in Indonesia and New Caledonia, lithium development in Argentina, and mineral sands production in Senegal.
The group’s diversified asset base places it across several critical-minerals supply chains. The proposed recapitalisation is intended to strengthen its balance sheet, support compliance with banking covenants and maintain investment capacity across its portfolio. Eramet has faced pressure from weaker commodity prices, operational challenges and substantial capital requirements, increasing the importance of its financial position as it manages its mining and development activities.
Capital Increase Targets Financial Stability and Investment Capacity
The planned €500 million rights issue is intended to reinforce the company’s financial position rather than fund a single mine or processing facility. The equity injection would support the broader group and its operations across multiple jurisdictions.
The financing structure also distinguishes the proposed transaction from direct government funding of the entire amount. Although the French state intends to increase its relative ownership, the capital increase remains open to other eligible shareholders. Consequently, the full €500 million cannot be classified as French government funding, and the expected proceeds should not be treated as capital already received by Eramet.
State Equity Expands France’s Role in Critical Minerals
The transaction represents a direct-equity approach to securing influence over strategic raw-material assets. European support for the sector has also included grants, European Investment Bank loans, strategic-project designation and export-credit assistance. Through a larger shareholding in Eramet, the French state would gain greater influence over decisions concerning capital allocation, joint ventures, asset sales and strategic partnerships across the group’s international portfolio.
Completion of the rights issue remains the next milestone. If finalised, the transaction would strengthen Eramet’s balance sheet and increase French government ownership of a mining group with exposure to lithium, nickel, manganese and other strategic mineral markets.
