PRESS RELEASE
Paris, June 30, 2022, 8:30 a.m.
Eramet: the Group's economic contribution to the principal countries in which it operates increased, benefiting local communities
- In 2021, Eramet contributed €1.8 billion to the economies of the principal countries where it operates1.
- Local purchases and payroll amounted to €1.1 billion and €456 million, respectively.
- More than 65,000 people have benefited from the Group's social programs in the countries where it operates, with a total of €11 million in expenditure.
Eramet publishes today its annual report, which details its payments to governments in countries where the Group is engaged in industrial mining operations (“Reporting on financial transparency of the Group as at 31 December 2021” available on its website). The scope of this report does not take into account the subsidiary Weda Bay Nickel2.
This report, which has been drawn up in accordance with EITI (Extractive Industries Transparency Initiative) methods, mainly shows the taxes and royalties paid to the States and regions, as well as the dividends paid to public shareholders of the parent company and its subsidiaries.
In keeping with its policy of transparency, the Group has gone still further by presenting in this press release an overall picture of the contribution it makes in the main areas outside mainland France where it operates: Gabon, Senegal, Indonesia, Cameroon, New Caledonia, Argentina, the United States and Norway3.
This document illustrates Eramet's commitment to local communities and its determination to be a catalyst for economic development in the countries where the Group operates.
In 2021, Eramet continued its policy of fostering local development. The Group's payroll amounted to €456 million and local purchases totalled €1,093 million.
Supporting the local communities living near the Group's facilities is a key part of the strategy being implemented by Eramet's teams. More than 65,000 people benefited from the Group's social programs in support of young people, health and local development, with a total expenditure of over €11 million. This amount does not include expenses related to the management measures environmental and social impact of our operations.
All the details regarding the Group's contributions, broken down by country, are set out in the infographics available here.
In Gabon, Eramet contributed €566 million. Its subsidiary Comilog, which specializes in the extraction, processing and transformation of manganese ore, is the country's second-largest private employer, providing more than 8,300 direct jobs, and the world's leading producer of highgrade manganese ore thanks to the Moanda mine. The Société d'exploitation du Transgabonais (Setrag), that operates the railway line that links Franceville, in the East, and Owendo on the country's West coast, is the Group’s other subsidiary in Gabon. The two companies made €303 million in purchases (excluding maritime transport) in the country. With notably the CSR Fund managed by Comilog and the Gabonese State, the Group provided support to more than 40,000 women and men in 2021, who benefited from its social projects in the areas of health, access to water, economic diversification, and education.
In Senegal, the Group's contributions in 2021 amounted to €112 million. Grande Côte Operations (GCO) produces mineral sands, mostly ilmenite and zircon. In 2021, GCO employed nearly 1,300 people, 96% of whom were Senegalese. Purchases in the country amounted to €69 million. Due to the mobile nature of the mine’s installation, the main impact of operations on neighboring communities is the displacement of homes as well as agricultural and pastoral areas. For the sixth year running, GCO has taken steps to resettle the affected populations in improved living conditions (access to water and electricity, access to a school in the new village, agricultural lands equipped). It has done so following a co-construction approach, with information and consultation actions with the affected villagers.
At the same time, GCO is active in supporting the economic and social development of Senegal, in particular through the creation of a number of local Economic Interest Groups (EIGs), as well as through a program of school renovations. Thus, a large number of initiatives undertaken in the fields of education, health and economic diversification have benefited more than 20,000 people.
In New Caledonia, the Group's contributions in 2021 amounted to €440 million. La Société Le Nickel (SLN) is the world’s number one producer of ferronickel, a product intended for the stainless-steel market. SLN is the region's largest private employer, providing more than 3,140 direct jobs, and it made €284 million in purchases from New Caledonian suppliers. The subsidiary’s social programs in 2021 provided support for more than 4,000 people. The actions were carried out on the whole territory, in particular on the East coast and in the North, around the mining site of Poum, which development was accelerated in 2021.
In Argentina, the Group has a world-class lithium deposit, Centenario-Ratones. Eramet is establishing itself as a key player for this metal, which is vital to the energy transition. In 2021, the Group, which decided to launch the construction of its Lithium Carbonate production site, contributed €15 million to the national economy. The pilot site currently benefits from 124 direct jobs representing 98% of Argentines. Purchases in the country amounted to €11 million. 73 people benefited directly from the subsidiary's investments in the local community.
In Norway, the Group contributed €347 million through its subsidiaries Eramet Norway—which supplies manganese alloys, mainly for use in steel production—and Tizir Titanium & Iron (TTI), which produces titanium slag for the pigment industry. The Group’s various facilities across Norway provide direct employment for 785 people, 97% of whom are Norwegians. In 2021, these subsidiaries invested €186,000 in local communities through funding and support for various cultural and educational initiatives.
In the United States, Eramet Marietta, one of the main American producers of manganese alloys, made a contribution of €100 million to the American economy. The plant provides 177 direct jobs, 98% of which are held by US citizens. Purchases in the country amounted to €71 million.
Lastly, in Cameroon, the Group is continuing its exploration effort on the Akonolinga rutile block. With this project, the Group is seeking to expand its mineral sands operations. These exploration activities in Cameroon have contributed €370,000 to the nation's economy, including €70,000 in payments to the government and €300,000 in investments in health and water projects for local communities.
Finally, in Indonesia, WBN contributed up to 104,5 MUSD (€88,2 million) in taxes and royalties paid to the government, and up to 2 MUSD (€1,7 million) in community investment. These community investment expenses complement the amount allocated to contributive actions by the Industrial Park where WBN plant is located.
Overall, Eramet Group has contributed €1.8 billion to the economies of the countries where it operates.
Virginie de Chassey, Director of Sustainable Development and Corporate Commitment: “Eramet's social responsibility is a tangible way of translating our Raison d'être into action. The Group's contribution in 2021 in its host territories illustrates this concern. We have set ourselves a mission: to support local economic development and growth so that our project creates value and opportunities for all our local stakeholders.”
Calendar
27.07.2022: Publication of 2022 half-year results
27.10.2022: Publication of 2022 Group third-quarter turnover
ABOUT ERAMET
Eramet transforms the Earth’s mineral resources to provide sustainable and responsible solutions to the growth of the industry and to the challenges of the energy transition.
Its employees are committed to this through their civic and contributory approach in all the countries where the mining and metallurgical group is present.
Manganese, nickel, mineral sands, lithium, and cobalt: Eramet recovers and develops metals that are essential to the construction of a more sustainable world.
As a privileged partner of its industrial clients, the Group contributes to making robust and resistant infrastructures and constructions, more efficient means of mobility, safer health tools and more efficient telecommunications devices.
Fully committed to the era of metals, Eramet’s ambition is to become a reference for the responsible transformation of the Earth’s mineral resources for living well together.
www.eramet.com
| INVESTORS CONTACT Director of Investor Relations Sandrine Nourry-Dabi Tel. +33 1 45 38 37 02 sandrine.nourrydabi@eramet.com | PRESS CONTACT Communications Department Pauline Briand—Communications Director pauline.briand@eramet.com Fanny Mounier—Head of Media Relations fanny.mounier@eramet.com Image 7 Marie Artzner Tel. +33 1 53 70 74 31 | Mob. +33 6 75 74 31 73 martzner@image7.fr |
1 This total includes the economic contributions made by the French entities that are not part of the current divestiture scope.
2 Company accounted for by the equity method in the Group's consolidated accounts.
3 The subsidiaries of the High-Performance Alloys division, which are in the process of being sold, are not included.
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