Antam’s subsidiary, PT International Mineral Capital (IMC), and Hong Kong CBL Limited (CBL), a subsidiary of Ningbo Contemporary Brunp Lygend Co Ltd, have signed a Conditional Share Purchase Agreement (CSPA) to acquire the stake held by Antam in PT Feni Haltim, the operator of Halmahera Industrial Park.
Antam’s decision to divest its shares in Halmahera Industrial Park is driven by the goal of developing the center of an integrated electric vehicle (EV) battery ecosystem in East Halmahera, North Maluku. This includes plans to construct new ports and expand the existing Rotary Kiln Electric Furnace (RKEF) technology-based nickel smelter, which will have four production lines to support the growing demand for EV batteries.
“[The signing] of the CSPA will hopefully boost the effectiveness of the EV battery development in Indonesia and add values to Antam’s nickel ores, either limonite or saprolite,” Antam corporate secretary Syarif Faisal Alkadrie said on Tuesday, May 9.
Antam believes this collaboration with HKCBL will have a positive impact on Indonesia’s investment climate. On the same occasion, Antam and HKCBL have also signed a Shareholders Agreement (SHA), which will become effective after the finalisation period of the CSPA. The two companies will work together to manage the industrial area of Feni Haltim and build the integrated EV battery ecosystem, which is a crucial part of the collaboration.
In the future, on the date of transaction completion, Antam, IMC, and HKCBL will sign a Share Sales Purchase Agreement. Following this, in accordance with PSAK 65 “Consolidated Financial Statements”, PT Feni Haltim will no longer be consolidated into the company’s financial statements as a subsidiary.
An important milestone in Antam EV battery development
Antam and HKCBL partnership is also a follow-up to the framework agreement that Antam, PT Industri Baterai Indonesia (IBI), and CBL previously signed for the development of the EV battery ecosystem in Indonesia, which includes the nickel mining and battery recycling industries.
For Antam, signing the CSPA is an important milestone in its EV battery development. Moreover, CBL is known for its portfolio of developing and managing nickel industrial estates, suggesting that the industrial area managed by Feni Haltim will never be short of tenants.
Previously, Presidential Chief of Staff Moeldoko said CBL was initially hesitant to proceed with the project after the US Government issued the Inflation Reduction Act (IRA). The IRA discredits electric batteries originating from countries without a free trade agreement with the US.
Moreover, the IRA considers EV battery production, which benefits from Chinese investments, to be negative for dominating the nickel mining and processing segments. In addition, CBL is in extensive discussion with Antam to secure exclusive rights to manage the mining area in East Halmahera and ensure a nickel supply for over 20 years.
As part of the Dragon Project, a collaborative effort between Antam, IBC, and CBL, the partners will use the nickel from the region to produce mixed hydroxide precipitate (MHP) and mixed sulphide precipitate (MSP) as raw materials for the precursor and cathode of electric batteries. Antam plans to finalize the nickel ore sales deal with CBL through its subsidiary PT Sumberdaya Arindo (SDA) in October.
Back in January, Antam and HKCBL inked a CSPA for a portion of Antam’s shares in SDA, marking the first stage of the Dragon Project. Under this project, CBL will build all the necessary facilities for the first phase of battery cell production in East Halmahera.
In the second phase, CBL will construct factories for nickel sulphate, precursor, cathode, and battery cell, as well as a battery recycling plant at the Industrial park Indonesia located in North Kalimantan. The total investment for this project is estimated to be around US$6.7 billion.
