PARIS, Oct 16 Reuters Eramet shares plunged nearly 19 on Wednesday after the French firm sharply cut 2024 production targets for its manganese mine in Gabon and nickel mine in Indonesia, the group39;s two biggest mining operations.

Eramet announced the lowered forecasts late on Tuesday, citing a downturn in the manganese market and a smallerthanexpected permit allowance in Indonesia.

The Moanda mine in Gabon and the Weda Bay mine in Indonesia have driven Eramet39;s growth as its historic nickel operation in New Caledonia has been drained by losses and social unrest.

Analysts at ODDO BHF called the news another setback for Eramet after it cut 2024 targets for ore output in Gabon and Indonesia in July while trimming shortterm targets for a new lithium mine in Argentina.

Eramet attributed the deterioration in manganese to falling Chinese output of carbon steel which requires manganese in its production and an influx of lowgrade ore following a price surge earlier this year.

Eramet had raised its fullyear core profit guidance in July in the wake of a price jump.

Shares sank 16.1 to 55.35 euros in Paris trading, after earlier dropping by as much as 18.8 to a threeyear low of 53.55 euros.

The company has shifted in recent years towards minerals needed for electric vehicle batteries, notably by developing a lithium deposit in Argentina with Chinese group Tsingshan.

But the group remained largely tied to the steel sector, Bank of America analysts said in a note, adding…