US-Abu Dhabi fund eyes stake in troubled Eramet

A MINING investment fund backed by the US and Abu Dhabi is in early discussions about acquiring a stake in Eramet, the troubled French miner whose shareholders include the French state, said the Financial Times on Friday.The potential transaction comes as allied nations intensify efforts to counter China’s grip on critical minerals supply chains.Orion Critical Mineral Consortium, established last year with initial capital of $1.8bn, is considering buying some or all of the 37% stake held by the Duval family, said the FT citing two people familiar with the matter. The French government holds a separate 27% stake and has been described as open to new investors, it said.Eramet shares jumped more than 8% to €53.80 in Paris on Friday, valuing the company at close to €1.6bn.Orion CMC was formed by alternative investment group Orion Resource Partners alongside the US International Development Finance Corporation and Abu Dhabi sovereign wealth fund ADQ, with a long-term deployment target of $5bn. Its first deal, struck in February, was a 40% stake in Glencore’s copper and cobalt operations in the Democratic Republic of Congo.Eramet produces nickel, lithium, manganese and mineral sands across Indonesia, Gabon, Argentina and the US, but has faced mounting difficulties. These include a sharp reduction in its Indonesian nickel mining quota and a February announcement of plans to raise €500mn to address a deteriorating financial position.The company has also undergone a governance crisis, with its CEO and finance director both dismissed in recent months.Eramet chair Christel Bories, temporarily reinstated as CEO, told the FT last month that all fundraising options were on the table. Sovereign wealth funds and industrial companies had approached the group seeking to secure critical raw material supplies, she said.The post US-Abu Dhabi fund eyes stake in troubled Eramet appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com