Fire at key Senegal mine wipes out more than half of French giant Eramet’s mineral output until 2027

Three months after flames tore through key facilities at its Grande Côte Operations in Senegal, Eramet says production has only partially resumed and remains stuck at roughly 30% of normal capacity.

The company now expects heavy mineral concentrate output of between 300,000 and 400,000 metric tons in 2026, a dramatic drop from the roughly 900,000 tons initially expected before the February fire.

Full recovery is not expected until the first quarter of 2027.

The setback matters far beyond Senegal.

Eramet’s operations produce zircon, ilmenite, rutile and leucoxene, industrial minerals essential to sectors ranging from ceramics and paints to aerospace manufacturing and titanium production.

These materials also play a growing role in clean energy technologies and advanced industrial supply chains increasingly viewed as strategically sensitive by major economies.

The disruption comes at a time when manufacturers worldwide are already facing tighter competition for critical raw materials amid geopolitical tensions, supply chain diversification efforts and rising industrial demand.

Senegal operation becomes a global pressure point

The fire struck Eramet’s Wet Concentration Plant (WCP) at its Grande Côte site on February 22, forcing a major operational shutdown at one of the world’s important mineral sands projects.

Grande Côte, located along Senegal’s Atlantic coast, is considered one of the country’s most strategically important mining assets and a major source of export revenue.

Mining has become increasingly central to Senegal’s economic ambitions as the country pushes to attract foreign capital beyond oil and gas. The sector contributes significantly to industrial activity, employment and infrastructure development.

Eramet said temporary production solutions introduced after the fire now allow limited operations through its Supplementary Dry Mining Unit.

The company hopes to gradually rebuild heavy mineral concentrate inventories before restarting intermittent operations at its Mineral Separation Plant later this summer. Commercial shipments are expected to resume afterwards.

Still, the company admitted the incident would continue to weigh on earnings despite mitigation efforts introduced since the fire.

Its shares fell roughly 1.5% in early trading on Wednesday, extending the stock’s year-to-date decline to more than 5%.

The minerals processed at the Senegal site are deeply tied to global manufacturing.

Zircon is heavily used in ceramics, tiles and foundry products, while ilmenite and rutile are critical feedstocks for titanium dioxide, a material widely used in paints, plastics, paper and aerospace components.

Titanium-related minerals have also become strategically important amid rising defence spending and global efforts to secure industrial supply chains outside dominant producers.

Recent years have seen increasing concern across Europe and other major economies over access to critical minerals, especially after supply disruptions linked to wars, trade restrictions and logistical crises.

Africa has increasingly emerged as a key battleground in that race.

Countries including Senegal, Mozambique, South Africa and Madagascar hold major deposits of mineral sands and rare industrial minerals now attracting heightened global attention.

Recovery could be expensive

Eramet has begun reconstruction work on damaged facilities but has yet to disclose the expected capital expenditure or insurance compensation tied to the disaster.

Force majeure provisions affecting customer and supplier contracts also remain active, highlighting the scale of commercial disruption triggered by the shutdown.

The company said reconstruction efforts are being carried out in coordination with Senegalese authorities to reduce the socio-economic impact of the slowdown on surrounding communities.

“The partial restart of our operations in Senegal is very positive news for the Group, for our customers and for all our stakeholders,” said Charles Nouel, Eramet’s chief operating officer.

He added that the company remained focused on restoring full production capacity by early 2027.

For investors and global manufacturers, however, the incident is another reminder that the world’s race for strategic minerals increasingly depends on infrastructure resilience in resource-rich African economies.