Eramet slips in Paris, Ceo torpedoed and CFO suspended

  (Il Sole 24 Ore Radiocor) - A new shake-up for Eramet on the Paris Stock Exchange, in reaction to traumatic developments in its governance. Following the torpedoing of CEO Paulo Castellari last week, the mining group has suspended CFO, Abel Martins-Alexandre, from his duties. News of the cfo's suspension was first reported by the Financial Times over the weekend. An Eramet spokesperson confirmed that 'an interim management team has been established within its finance directorate while the CFO temporarily resigns during a investigation into management practices'.

The dismissal of the CEO, which took place last Sunday, was motivated by coordination problems with the company's board of directors and teams and not related to financial results, Eramet's president Christel Bories, who took over the pro-tempore position of CEO, which she had already held for years before Castellari's arrival, had explained at the time. According to the Financial Times, Martins-Alexandre, who joined Eramet in September and is considered close to the former CEO, was on sick leave after Castellari's departure, which took place only eight months after he took office. This unexpected exit raised many questions about the governance of the group, which specialises in nickel, manganese and lithium. Ft, citing sources familiar with the dossier, specified that Castellari's dismissal and Martins-Alexandre's suspension were not related to any allegations of misconduct. On the contrary, according to the newspaper, the two managers had recently set up an internal task force to investigate potential financial irregularities within the group in recent years.

Eramet is 37% owned by the Duval family and 27% by the French state. The company has been affected by the fall in nickel prices and the difficulties of its mine in the French territory of New Caledonia. The group also produces manganese ore in Gabon, where the government intends to ban exports of the unprocessed ore. Castellari had initiated a review of Eramet's operations and proposed changes to improve its performance. Among the options proposed by the ceo to the board of directors, writes the Ft, were the sale of assets and a capital increase. Eramet will announce its annual accounts on 18 February, after having closed the first nine months with an 8% drop in revenues.