PARIS, April 25 (Reuters) - Eramet subsidiary

SLN's nickel mining operations in northern New Caledonia have

been suspended, adding to difficulties at the loss-making

business that saw a slide in first-quarter output.

SLN is part of a struggling New Caledonian nickel industry

that the French government is trying to salvage with a proposed

rescue package.

Mining production at SLN was 1.0 million wet metric tons in

the first quarter, down 32% from the same period last year, as

issues over mining permits weighed on output.

SLN's mining activities have now been suspended in the

northern province of France's South Pacific territory since

mid-April, with an administrative process under way to resume

operations, Eramet said in a first-quarter sales statement.

"SLN continues to face major challenges and its financial

situation remains critical," Eramet said.

SLN has been in dispute with the authorities of the northern

province over the renewal of financial guarantees for the mines,

with a one-year extension proposed by Eramet rejected as too

short.

In contrast, Eramet is continuing to expand production at

its Weda Bay nickel mine in Indonesia, operated in partnership

with China's Tsingshan group. First-quarter ore production

reached 11.1 million wet metric tons, up 52% year on year, it

said.

Eramet also increased output at its manganese mine in Gabon

to 1.9 million metric tons, up 76% from a year-earlier.

While manganese ore prices fell year-on year in the first

quarter, weather disruption to Australian production is expected

to reduce market supply significantly in 2024, Eramet added.

For lithium, the group forecast output of between 5,000 and

7,000 metric tons of lithium carbonate equivalent in 2024 at its

Centenario project in Argentina that is due to enter production

around mid-year.

The group increased its forecast range for 2024 adjusted

core earnings to between 750 million euros and 900 million euros

($803.25 million-$963.90 million), compared with an initial

projection of 650-800 million euros in February.

($1 = 0.9337 euros)