Eramet Postpones Decision on Weda Bay Project

Reuters reported that France’s Eramet SA (EPA:ERA) reported an operating loss of $61.71 million for 2013, down significantly from the $153-million profit it posted in 2012. The decline came on the back of low nickel prices.

The company also said that it will be delaying a final investment decision on its Indonesia-based Weda Bay project due to “weakness in the nickel market, as well as ongoing tax and legal notifications with the Indonesian government.”

As quoted in the market news:

‘This postponement of the project led the Eramet group to record a 224 million euro writedown as of Dec. 31,’ [Chairman and CEO Patrick] Buffet said.

Eramet has a majority stake in the project alongside Japan’s Mitsubishi Corp. and Indonesia’s PT Antam.

The French group said it was confident in the outlook for nickel after Indonesia’s move last month to ban the export of most unrefined metals, including nickel ore. The ban has boosted nickel prices as it is expected to curb global oversupply.

Click here to read the full Reuters report.