Eramet, a French mining company, announced significant reductions in its production targets for 2024 on Tuesday.
The adjustments stem from a downturn in the manganese market and an unexpected reduction in permit allowances in Indonesia.
The Moanda mine in Gabon and the Weda Bay mine in Indonesia are both recognized as the largest producers of their respective minerals globally.
These operations have been crucial to Eramet’s growth, especially as its nickel mining activities in New Caledonia have faced losses and social unrest.
Earlier this year, Eramet had raised its full-year core profit guidance based on an increase in manganese prices. However, the company stated that the manganese market has recently deteriorated.
This decline is primarily due to a significant drop in Chinese carbon steel output, which is the primary consumer of manganese.
Additionally, there has been a surge of low-grade manganese entering the market following the earlier price increases.
As a consequence, Eramet’s subsidiary, Comilog, plans to suspend ore production at the Moanda mine for at least three weeks.
The suspension’s duration will be reassessed based on market activity.
Eramet now forecasts that manganese ore production and transportation from Moanda will range between 6.5 million and 7.0 million metric tons for 2024.
This represents a decrease from the previous estimate of 7.0 million to 7.5 million metric tons.
