(AOF) – Eramet maintains its economic contribution in its main operating territories and confirms the impact of its corporate commitments. Across all of its operating territories, the group’s economic contribution reached 3 billion euros in 2023. Over the same period, the group’s turnover amounted to 3.8 billion euros. . Local purchases accounted for two-thirds of this contribution, and salaries about one-sixth.
Taxes and dividends paid in the various territories where the group operates amounted to 687 million euros in 2023, compared to 480 million euros in 2022.
Community investment for the benefit of local communities reached more than 8 million euros in 2023, benefiting more than 270,000 people, particularly young people and women, who constitute the priority target audiences for the group’s societal actions.
This amount includes all contributory community expenditures of the sites in which Eramet is a shareholder, as well as significant support provided for development actions. This amount does not include expenditures related to the management of negative environmental and societal impacts of the group’s operations.
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Key points
– Producer, created in 1880, of ores and alloy metals, world leader in manganese ore and ferronickel, 4th in zircon and titanium materials;
– Turnover of €5.4 billion, refocused on mining and metals – manganese for 59% of sales, nickel for 33%, mineral sands for 9%, lithium being under development;
– Sales made in Asia for 50% (including 20% in China), in Europe for 28% (including 6% for France), in South America for 12% and in North America for 6%;
– Business model based on the valorization of metals and minerals essential to economic development (manganese, nickel, mineral sands) and the energy transition (lithium, nickel/cobalt salts, battery recycling);
– Capital jointly controlled at 64.21% by the French State including STCPI (4%, Société Territoriale Calédonienne de Participation Industrielle, owned by the New Caledonian provinces), Cristel Bories being CEO of the board of 18 directors;
– Cleaned up balance sheet with debt leverage of 0.7 at the end of June 2023 and equity ratio of 33%.
Challenges
– Refocused strategy after the disposals of Auber & Duval and Eurasteel:
– grow in attractive businesses – manganese ores and mineralized sands,
– expand the portfolio in metals for energy transformation – nickel and cobalt salts and recycling of lithium ion batteries;
– Innovation strategy supported by the IDEAS center in Trappes and financed at 1% of revenues:
– deployed internally via the Data Factory: management by mining 4.0 business units using data, additive production, robotization, IoT, artificial intelligence, etc.
– based on open innovation: challenges for young doctors, start-up competitions, university and scientific partnerships;
– Environmental strategy to contribute to carbon neutrality in 2050:
– 40% reduction in CO2 emissions in 2035, particularly in the decarbonization of metallurgical production and the rehabilitation of mining sites (residue management),
– circular economy and protection of water resources and air quality,
– increase to 40% in 2030, vs 2019, of loans linked to sustainable development;
– World-class resource portfolio: manganese (Moanda in Gabon), nickel and nickel-cobalt (New Caledonia and Weda Bay in Indonesia), mineral sands (Senegal), lithium (Argentina and France) and battery recycling (France) .
Challenges
– Sensitivity to geopolitical risks in New Caledonia, Gabon and Senegal;
– Success of the cost reduction and production optimization plan in the face of a degraded market – fall in the selling prices of manganese and nickel, inflation in the price of inputs and logistical disruptions;
– Project progress:
– energy transition: pilot plant in France for battery recycling and, for 2024, launch of lithium production in Argentina and finalization of the study on nickel and cobalt at Sonic Bay,
– expansion of the portfolio: exploration of lithium brines in Chile and, in Indonesia, of nickel limonites.
Learn more about the Commodities/Metals sector
The multiple challenges of environmental criticality
It first refers to the supply and availability of different metals in the subsoil. The other determining element is demand. According to the International Energy Agency, lithium consumption will increase more than 40-fold by 2040. Copper is also the perfect example of this criticality. According to S&P Global, copper consumption will double by 2035, from 25 million tonnes per year to 50 million tonnes. However, investments in new mines are penalized by falling prices and rising financing and production costs. Shortages are therefore to be feared in ten or fifteen years. Finally, the mining industry will face growing opposition from populations because of its impacts (particularly in terms of waste and water pollution).