Mitsubishi has agreed to transfer its 30% shares held with Pacific Metals (Pamco) in Strand Minerals (Indonesia) to French mining and metallurgy company Eramet.

Strand Minerals owns a 90% stake in the Weda Bay project in Indonesia.

Mitsubishi said it had carried out a feasibility study since joining the project in February 2009, and the latest move is part of its plans to alter its mining assets portfolio.

“Resources of Weda Bay’s nickel deposit are valued at more than 9.3 million tonnes.”

The criteria for project development have not been met and the company has decided to sell all its shares to Eramet in accordance with the shareholders’ agreement.

Upon completion, Eramet will become a 100% shareholder in Strand Minerals and the group’s net debt is set to increase by nearly €100m.

The measured, indicated, and inferred resources of Weda Bay’s nickel deposit are valued at more than 9.3 million tonnes, which represents an increase of more than five million.

Eramet suspended its major projects such as Weda Bay due to a downturn in metal markets.

Meanwhile, the company reported a 14% fall in sales in the first-quarter 2016 compared with first-quarter 2015 primarily due to changes in nickel prices.

Eramet’s nickel sales fell by 39% and manganese sales dropped down by 10%. The company’s alloys sales were down 2% compared with the first-quarter 2015.