French mining group Eramet has lowered its capital expenditure target for this fiscal year. It announced that it will announce more measures in December to combat declining results and increasing debt at the nickel-and-manganese producer.

In a third quarter sales report, the company said that it had revised its capital expenditure forecast for 2025 down to 400-450 million euro ($466-$496 millions) from 400-450 million euro.

The new CEO Paulo Castellari launched a performance evaluation in June that included optimisation of capital expenditure. Eramet plans to provide more information in early December. It also said that it is considering additional measures to improve its balance sheet and maintain adequate liquidity.

The group requested a waiver of its lenders to counter the risk that it would not be able to comply with its gearing covenant by December 31, 2025.

Eramet has reported a 10% drop in sales year-on-year to 720 millions euros. This was due to lower prices and logistical problems at its manganese operation in Gabon.

Eramet, due to the lack of rail capacity in Gabon, has reduced its target for transporting manganese ore to between 6.1 and 6.3 millions metric tons by 2025. This is the second reduction to the goal.

It also maintained its production forecast for 2025 for its Weda Bay Nickel joint venture in Indonesia, which is between 36 and 39 millions wet metric tonnes, and its new lithium mine, in Argentina, for which it expects to produce 4,000-7,000 metric tons of lithium carbonate this year. Eramet lowered both targets in July.

(source: Reuters)