Jakarta. Indonesia’s sovereign wealth fund Danantara has signaled the possibility of acquiring French mining giant Eramet’s stake in Weda Bay, which is among the world’s largest nickel mines.

Eramet operates the mine via the joint venture with Chinese stainless steel manufacturer Tsingshan and Indonesia’s state-run miner Antam. Tsingshan is the majority shareholder at 51.3%, while Eramet holds 37.8% stake. Antam accounts for the remaining 10%. Antam is also part of the Danantara-backed mining holding MIND ID.

Asked about reports of Danantara’s possible acquisition of Eramet’s shares, the fund’s boss Rosan Roeslani said that the agency was always ready to establish strategic partnerships, including corporate action.

“We are open for talks on investments in Indonesia. Danantara can be a strong local partner,” Rosan told the press at the presidential palace in Jakarta, as reported by the state news agency Antara.

Rosan said that talks with Eramet were still in the initial phase, and had not made any final decision. “We are open. We are in discussions with Eramet,” he added, while saying Danantara’s presence could cement Indonesia’s position in strategic projects.

Last year, Eramet Indonesia chief executive officer Jérôme Baudelet had said that the company had discussed nickel partnership with Danantara and the Indonesia Investment Authority (INA). 

Danantara Chief Investment Officer Pandu Sjahrir at the said that the collaboration sought to develop an integrated ecosystem for raw materials for electric vehicle batteries in Indonesia. The two funds will manage long-term financing to support investment development, while Eramet contributes its technical expertise and experience in implementing large-scale mining projects in accordance with international sustainability standards.

Weda Bay Nickel operates an open-pit nickel mine in North Maluku. Its production totaled 36.3 million wet tonnes in 2023.