JAKARTA (TheInsiderStories– Local coal miner, PT Harum Energy Tbk (IDX: HRUM) strengthened its expansion into nickel businesses by acquiring 51 percent stakes of PT Position from Singapore-based Aquila Nickel Pte., Ltd. The acquisition has been done through its unit, PT Tanito Harum Nickel, for US$80.32 million.
“The purpose of the transactions is to develop and expand our business activities in the mining sector,” said the president director, Ray A. Gunara, in an official statement released on Monday (02/01),
The latest acquisition adding to the business expansion made by Harum Energy in the last six months. End of last year acquired 3.22 percent Australian miner, Nickel Mines Ltd., as part of the company’ business diversification. The value reaches A$34.26 million (US$26.15 million).
Earlier, Nickel mines raises its ownerships in Indonesian Hengjaya Nickel and the Ranger Nickel projects from 60 to 80 percent for A$231 million. The company said, these decisions have been made in consultation with its partner, China’ Shanghai Decent Investment Group Co. Ltd., and associates, which currently holds the other 40 percent interests in both projects.
In addition, the miner also will increase its current holding of Hengjaya Holdings Pte. Ltd, the Singaporean domiciled holding company that wholly owns PT Hengjaya Nickel Industry and an Indonesian company that owns 100 percent of of the unit. Upon completion of the transactions, its nickel production will increase from 26,000 tones per annum to 35,000 tones per year.
According to him, the purchase of nickel mines was the coal producer’ attempt to diversify the company’ businesses into the non-coal sector. Nickel Mines is an Australian public company engaged in the mining business that produces nickel pig iron in the Indonesia Morowali Industrial Park.
The company owned by tycoon Kiki Barki was originally established as PT Asia Antrasit. Its business activities is mainly engaged in mining, industry, trading and services industries. Currently, the main business activities of the company are operating and investing in coal mining and logistics through its subsidiaries.
Its mining activities operated through PT Mahakam Sumber Jaya, PT Santan Batubara, PT Tambang Batubara Harum, and PT Karya Usaha Pertiwi. The miner also owns PT Layar Lintas Jaya, a coal barging and transshipment company and runs investment activity though its subsidiary, Harum Energy Capital Ltd, and by end of 2015 owns 5.39 percent shares of Australian-based Cockatoo Coal Limited.
On Oct. 6, 2010, Harum Energy conducted an initial public offering of its share. By capitalizing on its excellent capabilities, the miner has successfully marketed its coal to various customers in domestic and international markets in Asia such as Japan, South Korea, Taiwan, China, and India.
While, Aquila Nickel is one of the investment portfolios of Solway Investment Group, a global investment company headquartered in Switzerland. The company focuses on mining and metals businesses. Their investment portfolio has factories and metal mines in Guatemala, Ukraine, Russia, Indonesia and Macedonia.
The Aquila project in Indonesia is located in Halmahera, which is estimated to have resources of over 120 million tones of dry saprolite ore with an average nickel grade of 1.58 percent, and more than 80 million tones of dry limonite ore with a nickel grade of 1.15 percent. and 0.15 percent of cobalt.
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