PARIS – Eramet said on Thursday it could talk to new investors about taking part in a €500-million capital increase that the struggling French mining group is planning for later this year.

The nickel, manganese and lithium producer said in February it was planning a capital increase, as well as asset sales, to shore up cash after a slump in earnings and a jump in debt last year.

In a first-quarter sales statement, Eramet said "discussions may be held with potential investors who could participate in the planned capital increase".

It reiterated that the capital raise was planned for the second half of the year subject to approval at the company's annual shareholder meeting next month.

Eramet has also obtained from its lenders a waiver on June and December 2026 gearing covenants, it said.

Eramet is also continuing a review of its portfolio with a view to asset sales this year, with the sale of minority stakes in some businesses notably under consideration, it said.

The group reported a 13% year-on-year rise in first-quarter sales to €840-million.

Meanwhile, Eramet is also planning to halt production at its nickel mine, in Indonesia, next month while it waits to see if it will obtain an additional volume allowance from the authorities.

Eramet's nickel mining joint venture in Indonesia received an initial production allowance of 12-million wet metric tons for this year, down from the 32-million it initially received for 2025, as part of steps by Indonesia to regulate more closely mining supply.

In a first-quarter sales statement, Eramet said it will use up its allowance of 12-million wet metric tons of nickel ore by mid-May, with its Weda Bay mine preparing to be go on care and maintenance next month.

Its joint venture PT Weda Bay Nickel is submitting a request for an upward permit revision, it said.

Within the initial allowance, the nine-million wet metric tons for external nickel ore sale were used up by mid-April, with the remainder of production dedicated to the joint venture’s adjacent nickel processing plant, it added.

Eramet owns and operates mines and smelters in Europe, Asia, Africa and North and South America.