The French state could increase its stake to 49% as the mining group seeks to repair its balance sheet and strengthen its position in critical minerals supply chains.
France is set to become Eramet’s largest shareholder through a planned €500 million capital increase before the end of 2026. The transaction is designed to strengthen the mining group’s finances after weaker earnings and rising debt put pressure on its balance sheet.
The French state currently holds about 27% of Eramet. Its stake could rise to 49% through the capital increase and the acquisition of subscription rights from the Duval family, the group’s longstanding major shareholder with an approximately 37% holding. The family would become Eramet’s second-largest shareholder.
Eramet said the French state’s proposal offered the best solution for restoring its financial position while reinforcing supplies of strategic metals to France and Europe. Chief executive and chair Christel Bories said the transaction was not intended to nationalise the company: the state would remain below 50% of both the share capital and voting rights.
A balance-sheet repair
Eramet announced the planned capital increase in February as it responded to a deterioration in financial performance. The group is also pursuing operational improvements and considering asset disposals as part of a broader funding plan.
Its portfolio includes nickel, manganese and lithium, commodities exposed to different market cycles and operational risks. Eramet has faced pressure from weaker prices, operational setbacks and a reduction in the nickel mining quota allocated to its Indonesian operations.
The new equity is intended to strengthen the balance sheet, help the group comply with its banking covenants and provide room to continue executing its strategy. But fresh capital alone will not secure a lasting recovery. Eramet will also need to improve operating performance and manage its exposure to volatile commodity markets.
Critical minerals become a state priority
The transaction also reflects a wider shift in industrial policy. European governments are seeking more secure and diversified supplies of the raw materials needed for manufacturing, energy technologies and other strategic industries.
Eramet gives France exposure to several important mineral supply chains, with nickel operations in Indonesia, lithium activities in Argentina and manganese production in Gabon and Senegal, alongside other mineral businesses.
A larger state stake would give Paris greater influence over a company whose assets extend well beyond France. That influence could support the country’s critical-minerals strategy, although ownership alone cannot guarantee additional supply or more favourable prices. Those outcomes will depend on production capacity, commercial agreements and market conditions.
Shareholder clarity after management upheaval
The capital increase follows a period of instability in Eramet’s senior management. Former chief executive Paulo Castellari was dismissed earlier in 2026, and finance chief Abel Martins-Alexandre also left his position. Bories subsequently resumed the chief executive role on an interim basis.
A clearer shareholder structure could make it easier for the company to appoint a permanent chief executive and establish a more stable governance framework. It does not, however, remove the underlying financial and operational challenges.
Eramet expects to carry out the capital increase in the fourth quarter of 2026. Completion remains subject to the terms of the transaction and the required regulatory approvals.
The test for Eramet will be whether state backing can translate into a sustained industrial recovery. For France, the investment is about more than supporting a listed mining company: it is also an attempt to secure access to materials that are becoming increasingly important to European industry.
