Eramet takes full control of lithium project from China’s Tsingshan
me-metals: Paris – Eramet has bought out Chinese partner Tsingshan in a lithium project in Argentina that is about to begin production, the French miner said on Thursday.
According to me-metals cited from mining.com, Eramet used available liquidity for the $699 million purchase of Tsingshan’s 49.9% stake, it said.The Centenario project, due to start production in the coming weeks, was attractive despite a drop in lithium prices and full ownership would let Eramet decide how to pursue a planned
second production facility, Chair and CEO Christel Bories told reporters on a call.
Eramet shares rose 6% in early trade, recovering some of their steep losses since last week when the group’s production target cuts pushed the shares to three-year lows.
Metals group Tsingshan built the initial processing plant at Eramet’s lithium mine, with a target to reach annual capacity of 24,000 metric tons by mid-2025.
Tsingshan remains Eramet’s partner in Indonesia where they operate a nickel mine.
In a separate third-quarter sales statement, Eramet also announced the suspension of a project to develop recycling of electric vehicle batteries in France, citing slow development of the market in Europe.
The group cut its capital investment target for this year, with cost control measures including the suspension of its mine production in Gabon announced last week in response to a downturn in the manganese market.
The reduced spending partly reflected a delay at the second plant in Argentina, with a decision expected next year and construction potentially starting in 2026, Chief Financial Officer Nicolas Carre told an analyst call. Construction had been expected to begin next year.
Bories said the manganese market, hit by an influx of low-grade ore from South African and reduced demand from Chinese steel makers, was expected to return to normal conditions during the fourth quarter.
The group did not update its projection for full-year adjusted earnings before interest, tax, debt and amortisation (EBITDA), with Carre telling reporters metal price forecasts have been too volatile.
Eramet reiterated its expectation for higher EBITDA in the second half compared with the first half, with Carre adding it expected to achieve full-year net profit.
source: mining.com
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