US-backed fund explores buying stake in troubled French miner Eramet - FT中文网
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US-backed fund explores buying stake in troubled French miner Eramet

Orion CMC looking at Duval family’s stake in group that boasts France’s government as shareholder
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{"text":[[{"start":9.8,"text":"A mining investment fund backed by the US and Abu Dhabi is considering buying a stake in troubled miner Eramet, whose top shareholders include the French state, as the race for minerals key to the energy transition escalates."}],[{"start":23.8,"text":"Orion Critical Mineral Consortium, set up last year with an initial $1.8bn to target overseas projects, is in the early stages of looking at acquiring some or all of the 37 per cent stake held by the Duval family, said two people familiar with the matter."}],[{"start":39.15,"text":"The French government is the second-largest investor in Eramet, and a tie-up with Orion CMC would mark another step in the push among allied nations to forge partnerships on mineral supply chains as they seek to counter China’s dominance of key metals, including lithium and rare earth elements."}],[{"start":56.95,"text":"Orion CMC, Eramet and the Duval family declined to comment."}],[{"start":62.1,"text":"The fund, formed by alternative investment group Orion Resource Partners, the US International Development Finance Corporation and Abu Dhabi-based sovereign wealth fund ADQ, has a long-term target to deploy $5bn."}],[{"start":78.2,"text":"It struck its first deal in February when it agreed to buy a 40 per cent stake in Glencore’s projects in the DR Congo that produce copper and cobalt. That came around two months after Washington signed a sweeping critical minerals, economic and security agreement with Kinshasa."}],[{"start":94.15,"text":"The Trump administration has sought to broker closer relationships with mining nations, including DR Congo, and those with cheap power — where energy-intensive metals processing could take place — such as the United Arab Emirates."}],[{"start":107.65,"text":"Orion CMC is targeting mining projects with existing operations or those close to production, to bolster the supply chains for minerals crucial to industries from technology to energy and defence. "}],[{"start":121.75,"text":"Eramet, which has a market capitalisation of €1.4bn, has operations spanning the production of nickel, lithium, manganese and mineral sands in countries including Indonesia, Gabon, Argentina and the US."}],[{"start":135.55,"text":"But it has faced setbacks in recent months, including a dramatic cut to its nickel mining quota in Indonesia. In February, it outlined plans to raise €500mn to stabilise a “deteriorated financial situation”. The Duval family this year appointed Lazard to explore options for its stake."}],[{"start":153.9,"text":"Eramet has also had to contend with a governance crisis, after its board fired chief executive Paulo Castellari just eight months into the job, citing divergences in “operating methods”. Finance boss Abel Martins-Alexandre was ousted days later."}],[{"start":170.5,"text":"Christel Bories, the chair and former chief executive who was temporarily reappointed to the top job, told the FT last month that fundraising options included selling a minority stake in Eramet assets, adding that “all” of them were on the table as the group courts new investors. "}],[{"start":188.15,"text":"“A lot of people are talking to us,” including industrial companies and sovereign wealth funds, she said, adding that the funds “want to secure the critical raw material supply of their country”."}],[{"start":198.6,"text":"“Everyone recognises that we have tier-one assets,” said Bories. The French government, which owns a 27 per cent stake, was “open” to potential new investors, she said at the time."}],[{"start":209.54999999999998,"text":"One person familiar with the CMC talks said a broader range of international investors would likely be more palatable for the French government. "}],[{"start":224.95,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781256188_4639.mp3"}

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