PT Hydrotech Metal Indonesia, a private metal producer, has plans to list its shares on the Toronto Stock Exchange as part of overseas expansion plans - Photo by PT Trinitan Metals and Minerals Tbk Office

JAKARTA (TheInsiderStories) PT Hydrotech Metal Indonesia, a private nickel producer, has plans to list its shares on the Toronto Stock Exchange as part of overseas expansion plans, said the management. Canada is a consideration for the companies for listing to spread the investors basis in the mining and metal sectors.

“After we get the certification, we expect the beginning or mid-2021 we expect an IPO in Canada,” said president director of PT Trinitan Metals and Minerals Tbk (IDX: PURE), Petrus Tjandra in a public exposure on Monday (09/21).

There are no further details regarding the target funds from the initial public offering (IPO). He explained that the plan is inline with the development of the latest hydro-metallurgical technology by the issuer to process low grade nickel laterite ore into cobalt nickel.

Tjandra hopes, the corporate action can be carried out in the early or mid of next year after the company’ obtained the certification, which is targeted to get by the end of this year. He assesses that the technology can reduce investment costs compared to High Pressure Acid Leach (HPAL) technology, which is currently being carried out by other miners.

“The minimum investment for HPAL is US$1 – 2 million, while with hydro-metallurgical technology it is about 70 – 80 percent cheaper,” said the president director.

Currently, the company is preparing a factory in the special economic zone of Palu in Central Sulawesi, covering an area of ​​200 hectares. Indonesian Nickel Mining Association sees, local nickel ore production is projected drops 52 percent ​​to 25 million wet metric tons (WMT) in this year.

The declined caused large of miners did not carry out their production activities in 2019 and the prices to low. Based on the the association data, said the secretary general Meidy Katrin Lengkey, low-grade nickel ore production was able to reach 52.76 million WMT in 2019, up 138 percent from the realization of production in 2018, which reached 22.14 million WMT.

This year, she estimated that the production to reach 25 million WMT of nickel ore production and the capacity production has not been able to meet the needs of 12 smelter units currently operating in Indonesia. Since the ban on nickel ore exports, said Lengkey, many miners have chosen not to carry out mining activities cause the local prices are still too low.

She hopes that the government could immediately issue binding regulations regarding the benchmark mineral prices and the imposition of sanctions. She also believed that in the next six months, the supply or availability of nickel ore in several smelters is running out or definitely stop.

“There are several smelters that have been added to the production line, automatic demand for nickel ore raw materials has increased as well. There are two new smelters which have started production this year too,” said Meidy

But, chairman of the Indonesian Manufacturing and Refining Industry Association, Prihadi Santoso believed, the nickel ore production is only 25 million WMT in this year and is sufficient to meet the need for operating nickel smelter raw materials. Earlier, director at energy and mineral resources ministry office, Yunus Saefulhak predicted that there would be braking of nickel ore production by miners after the production spike last year. Based on the ministry data, last year the nickel ore exports reached 30.19 WMT, up from 2018 realization at 20.07 WMT.

He also projects that by 2022 there will be 29 nickel smelters operating with a capacity of 69 million tons.

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