Indonesian tycoon said to weigh bid for Eramet’s nickel mine
Indonesian tycoon Andi Syamsuddin Arsyad is considering buying Eramet SA’s stake in one of the world’s largest nickel mines, people familiar with the matter said, in what would be the second major deal by the coal magnate this year.
The billionaire known as Haji Isam may seek to buy part or all of Eramet’s 38.7% stake in PT Weda Bay Nickel, the people said, asking not to be identified because the deliberations are private.
Eramet may seek a valuation of as much as $4 billion for the entire mine, a person familiar with the matter said. Other sources gave a more conservative valuation.
Eramet shares climbed as much as 9.8% in Paris Wednesday, the biggest intraday gain since June 12. The stock has lost 33% this year, giving the French company a market value of €1.1 billion ($1.2 billion).
Other suitors for the holding include Indonesian sovereign wealth fund Danantara, people familiar with the matter have previously said.
Considerations are ongoing and no final decisions have been made, the people said. A representative for Paris-based Eramet declined to comment. Haji Isam didn’t immediately respond to a request seeking comment via his conglomerate PT Jhonlin Group.
Nickel has been performing weaker than most other base metals this year, declining around 3% year to date, as persistent oversupply outweighs concerns over potential production curbs in Indonesia.
A deal for WBN would follow another recent deal by Haji Isam, who in September agreed to acquire a stake in PT Bayan Resources, one of the country’s top coal miners. The billionaire, whose businesses include coal, palm oil, nickel and cryptocurrency, was among the biggest backers of Indonesian President Prabowo Subianto’s 2024 election campaign and now oversees major government projects.
Eramet has had a presence in Indonesia for about two decades. The government slashed WBN’s production quota earlier this year, forcing it to halt operations. The quota was later lifted in a mid-year revision. Prior to the cuts, WBN was the world’s largest nickel mine, producing 42 million tons of ore. Its other shareholders are Chinese stainless steel conglomerate Tsingshan Holding Group Co. and Indonesian state miner PT Antam Persero.
Eramet in February unveiled plans to raise funds through a capital increase and asset sales to curb its debt, which soared last year amid challenges at some of its overseas operations. Last month, France’s government announced it would become the Eramet’s top shareholder.
Eramet earlier this week said that it has received expressions of interest from several investors for a significant portion of the group’s stake in WBN, and for a minority stake in its Centenario lithium plant in Argentina. Processes are underway, the company said, adding it agreed to sell undeveloped mining concessions in the Arizaro salar in Argentina for $71 million.
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