Eramet Resumes Operations at World's Largest Nickel Mine in Indonesia

French group Eramet (EPA: ERA) has resumed operations at its Weda Bay nickel mine in Indonesia, following an earlier halt in production after exhausting a limited mining quota earlier this year. Indonesia, recognized as the leading global producer of nickel, has decreased mining volumes through permit restrictions this year, aiming to enhance control over the export and pricing of commodities. In a statement, Eramet announced that the mining activities of PT Weda Bay Nickel (PT WBN) are being gradually restored with approval from Indonesian authorities.

Eramet to Update 2026 Nickel Sales Guidance

Eramet has announced it will soon update its 2026 guidance for external nickel ore sales, continuing its constructive conversations with Indonesian authorities, the French company confirmed. Meanwhile, there was no clarification on whether PT WBN, a subsidiary, secured an additional mining allowance, and an Eramet spokesperson declined further comment. Following these developments, Eramet's stock initially soared by approximately 5% in early trading on the Paris stock exchange, though it later receded slightly. The uncertainty surrounding the mining permits in Indonesia has negatively impacted the financial performance of the company, which is now contemplating a capital increase and selling stakes in certain operations.

• Weda Bay mine, the world's largest for nickel, was put on care and maintenance in May.
• Eramet announced that the mine's initial production allowance of 12 million wet metric tons for the year had been used up.
• The 2026 production volume is set to compare with an initial allocation of 32 million wet metric tons in 2025.
• Eramet co-owns PT WBN with Chinese steel group Tsingshan and Indonesian state-owned PT Antam Tbk.