PARIS, February 22 (Reuters) – Eramet announced that it was in “very advanced talks” with the French government to remove from its balance sheet several hundred million euros of debt linked to its loss-making nickel subsidiary, SLN (Société Le Nickel ), in New Caledonia.
The discussions between the mining group and the French state are part of broader negotiations aimed at safeguarding the nickel industry in New Caledonia, currently in difficulty.
Eramet, which has refused to inject more funds into SLN, is aiming for an agreement in the coming weeks with the state to remove 320 million euros of SLN debt from its own balance sheet, the company said on Wednesday. press Christel Bories, president and CEO, without giving further details.
The debt includes a new loan of 60 million euros granted to SLN by the French government this month. This loan should allow SLN to continue its activities at least until April, Christel Bories said during a conference call on the results.
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Beyond discussions on debt, Eramet remains open to different longer-term options for SLN, she added.
A spokesperson for the French Ministry of Economy and Finance said on Thursday that SLN’s debt was among the issues discussed with Eramet and that discussions were well advanced.
Eramet shares rose 2.83% at 1:40 p.m. GMT on Thursday on the Paris Stock Exchange, with analysts welcoming the prospect of debt reduction.
Eramet also reported on Wednesday a sharp decline in annual operating profit and announced that the first half of 2024 would continue to be affected by the “very degraded” price environment. (Gus Trompiz report, French version Augustin Turpin, edited by Sophie Louet)
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