PT Danusa Tambang Nusantara (DTN), a subsidiary of PT United Tractors Tbk (UNTR) in the gold mining sector, signed a Share Subscription Agreement (SSA) for 857 million shares with Nickel Industries Limited (NIC) from Australia on June 9, 2023.
NIC, a company registered on the Australian Stock Exchange (ASX) is a leading company that focuses on integrated nickel mining and processing with main assets in Morowali Industrial Park (IWIP), Halmahera, Indonesia.
Currently, the company owns an 80% stake in PT Hengjaya Mineralindo, a nickel mining company as the largest supplier of high-grade limonite and saprolite ore to IMIP, and operates twelve rotary kiln electric furnaces (RKEF), as well as having an agreement to build a High-grade processing facility Pressure Acid Leach (HPAL).
Business diversification
Sara K. Loebis, Corporate Secretary of UNTR, said that the share price issued by NIC was set at A$ 1.10 per share or a total value of A$ 942.7 million.
“The 857 million shares issued are equivalent to 19.99% of the total shares issued by NIL,” she added.
This transaction, including fulfilment of the preliminary terms of the agreement, is scheduled to be completed by September 29, 2023, at the latest.
“The strategic acquisition of a minority stake in Nickel Industries is an important step in our business diversification. This step will build on our integrated nickel strategy and Group expansion in the electric vehicle supply chain,” said Frans Kesuma, President Director of UNTR.
In addition, DTN has also signed a non-binding Collaboration Agreement to participate in the investment in the construction of a future HPAL NIC processing facility.
Through this investment, there will be further opportunities for the expansion of the company’s portfolio in nickel production. The company’s decision in this investment depends on the completion of the due diligence received by the company.
According to Frans, the NIC share purchase agreement is related to business diversification in the nickel sector and the development of the electric vehicle supply chain in Indonesia and is a strong and sustainable business aspiration. With this plan, the company’s revenue will not only depend on the coal business line.
