Eramet, one of France’s leading mining firms, saw its shares plummet by 16.7% on Wednesday following the suspension of operations at its Moanda manganese mine in Gabon. The halt, expected to last at least three weeks, is attributed to weakened demand from China, the world’s largest consumer of manganese alloys, which are essential for carbon steel production. The slowdown in China’s industrial output this summer has led to a sharp drop in manganese purchases, forcing Eramet to revise its 2024 production targets downward to 6.5–7 million tonnes from the previous forecast of 7–7.5 million tonnes.
Despite the suspension, Eramet intends to maintain shipments and sales during the downtime, with the duration of the stoppage contingent on market recovery. The company’s announcement comes ahead of its third-quarter earnings report, where reduced output and weaker pricing are expected to weigh heavily on performance. Analysts suggest the move underscores Eramet’s vulnerability to fluctuating demand in China, which accounts for the bulk of global steel production and heavily influences commodity markets.
The challenges facing Eramet are emblematic of the broader struggles in the mining sector as companies grapple with geopolitical uncertainties, uneven post-pandemic recoveries, and rising competition from lower-cost producers. Eramet’s recent pivot to exploring nickel and lithium opportunities underscores its effort to diversify amid a volatile market for manganese and other base metals. 
