April 23, 2026 – Based on comprehensive reports from Reuters and other foreign media, French mining group Eramet confirmed on Thursday (April 23) that, affected by the Indonesian government's significant reduction in annual nickel ore mining quotas, its Weda Bay nickel project in Indonesia will suspend production starting in May 2026.

According to Eramet's first-quarter earnings report and announcement released the same day, the approved nickel ore mining quota for the Indonesian joint venture PT Weda Bay Nickel for 2026 is only 12 million wet metric tons, far lower than the 32 million wet metric tons in 2025. As of mid-April, the 9 million wet metric tons of nickel ore quota designated for external sales had been fully consumed, with the remaining capacity only sufficient to supply the joint venture's associated nickel smelter.

The company estimates that, at the current mining pace, the full-year quota of 12 million wet metric tons will be completely exhausted by mid-May. At that point, the Weda Bay nickel mine will enter a maintenance and preservation phase, i.e., a temporary full shutdown. The joint venture has formally submitted a request to Indonesian regulators for a quota increase, but if the request is not approved, the suspension will be unavoidable.

Meanwhile, Eramet, under significant financial pressure, is advancing a series of recapitalization measures. The company announced plans to carry out a €500 million rights issue in the second half of 2026, and may bring in new investors to participate in the fundraising. The plan is subject to approval at the annual general meeting scheduled for May.

Eramet stated in February that, affected by a sharp decline in 2025 performance and a surge in debt, the company would supplement its cash flow through a combination of a rights issue and asset sales. The first-quarter earnings report showed that the group's quarterly revenue was €840 million, an increase of 13% year-on-year.

In addition, Eramet has obtained agreement from its main lending institutions to waive the financial leverage covenant requirements due in June and December 2026. The company also stated that it is evaluating the sale of minority stakes in some of its businesses to further optimize its asset portfolio.

Eramet owns and operates mines and smelting facilities in multiple locations around the world, including Europe, Asia, Africa, and the Americas. Although this suspension at the Indonesian nickel mine is a temporary measure, it may still have some impact on the regional nickel supply chain.