JAKARTA (TheInsiderStories) – PT Harum Energy Tbk (IDX: HRUM), a miner owned by local tycoon Kiki Barki, bought 24.5 percent of the total shares of private nickel refining producer, PT Infei Metal Industry (IMI), said the management on Monday (02/23). The acquisition made through its subsidiary, PT Tanito Harum Nickel, and have a valued of US$68.60 million.
President director Ray A Gunara said in an official statement, the purpose of this transaction is to develop nickel mining business into the higher value-added processing activities. The transaction is funded through a syndicated loan facility comprising UOB Ltd., OCBC Ltd.,, DBS Bank Ltd., and PT Bank BTPN Tbk (IDX: BTPN).
Recently, Harum Energy has aggressively acquired nickel miner as part of the company effort to enter another mining businesses. The mining company has acquired Nickel Mines Ltd., from Australia for A$34.26 million (US$27.19 million) and acquired 51 percent of PT Position shares owned by Aquila Nickel Pte. Ltd., for $80.32 million.
Nickel Mines is an Australian public company engaged in the nickel pig iron production, one of the main ingredients in the production of stainless steel. The miner holds 60 percent ownership in the Hengjaya Nickel and Ranger Nickel projects, both of which operate the Rotary Kiln Electric Furnace plant Morowali Industrial Park.
Gunara has announced, Harum Energy is targeting to rises the coal production of around 25 percent from the realization in 2020. During past year, the company was only able to produced around 3 million tones (MT) of coal or below than the initial target around 4 MT of coal.
He said, the realization of coal production had decreased due to unfavorable market conditions and the impact of the pandemic. In this year, the issuer also prepared a capital expenditure around US$7 million from 2020 absorbed $8 million. Currently, the miner was quite passionate about diversifying its business into the non-coal segment.
He believes that nickel has good long-term prospects. Earlier, the company had increased its share ownership in Nickel Mines Ltd., a nickel company listed on the Australian Stock Exchange, in stages. In mid-December 2020, the issuer owned 4.88 percent of total issued capital in Nickel Mines.
The nickel producer holds 80 percent ownership of PT Hengjaya Mineralindo, a company that explores nickel in the in Morowali, Central Sulawesi. Gunara assessed that nickel has good long-term prospects, supported by the level of consumption of this commodity which is projected to continue to grow in the future. This is in line with the prospects for the domestic electric vehicle battery industry.
The company was originally established as PT Asia Antrasit and engaged in mining, industry, trading and services industries. Currently, the main business activities of the issuer 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.
In the third quarter of 2020, the company’ net profit rose by 60.41 percent to $25.73 million while the revenues dropped by 32.03 percent to $136.14 million compared to previous year. The profit growth supported by other income accounts worth of $18.23 million from 2019 was recorded zero.
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