State-owned diversified miner PT Aneka Tambang (Antam), through its subsidiary PT Gag Nikel (PTGN), has finalized the acquisition of a 30 percent stake in PT Jiu Long Metal Industry (JLMI), a nickel smelting company focused on refining nickel.
JLMI is a subsidiary of Eternal Tsingshan Group Limited, based in Hong Kong, while PT Gag Nikel operates nickel mining activities in Gag Island, West Papua.
Dewa Wirantaya, Director of Business Development at Antam, said that the transaction was valued at US$102.5 million (Rp1.6 trillion).
This acquisition is part of Antam’s initiative to strengthen its nickel downstream projects in alignment with the company’s commitment to supporting the domestic nickel industry.
“The transaction aims to implement Indonesia’s downstream policy, as mandated by the government,” Dewa said in a disclosure to the Indonesia Stock Exchange (IDX) as quoted on Tuesday, October 8, 2024.
With this acquisition, PT Gag Nikel holds a 30 percent minority stake, while Tsingshan retains a 70 percent majority through its subsidiary Newton International Investment Pte Ltd.
The integration is expected to accelerate the downstream process and increase Antam’s contribution to the national nickel industry.
In addition to expanding its business, Antam and its shareholders could benefit from dividends generated by the operations of Tsingshan’s smelter subsidiary.
The collaboration also aligns with the government’s push to develop the national electric vehicle ecosystem by refining nickel domestically.
“The goal of this downstream obligation is to enhance financial performance and create added value for shareholders. Its implementation is also expected to support the Indonesian government’s efforts to develop the national electric vehicle ecosystem,” Dewa said.
