JAKARTA (TheInsiderStories) – Indonesian publicly listed miner PT Timah Tbk (IDX: TINS) is set to invest billions of dollars in the Nigerian minerals and mining sector, said Indonesian Ambassador to Nigeria Harry Purwanto last week.
He stated, the state-owned company has signed a Joint Venture Agreement (JVA) with Topwide Ventures Limited to explore manage the exploration, mining, processing and refining, transportation, sales and marketing of tin and mineral derivatives that exist in the African Continent.
To immediately realize the JVA, Topwide Ventures will soon complete the process early and targeted build factories in 2018 has been able to begin construction. The JV company’s future will be to optimize the mining concession area of 16,000 hectares and is targeted at an early stage has a production capacity of up to 5,000 metric ton ingots per year.
President Director of Timah Riza Pahlevi Tabrani said it sees Nigeria as a potential producer of tin in the deposit and also has a long history of global tin. He hoped the company become a world class mining company through the action.
Fajar Harry Sampurno, Deputy for Mining, Strategic industries and Media at the SOEs Ministry explained, PT Indonesia Asahan Aluminium (Inalum) has set up as the lead of holding mining last November. Timah, PT Aneka Tambang Tbk (IDX: ANTM), and PT Bukit Asam Tbk (IDX: PTBA), has merged under a mining holding company.
According to the Ministry’s calculation, the holding company concept will strengthen the financial capacity of mining holding with Rp106 trillion (US$7.85 billion) in assets, originating from Rp24 trillion in liability and Rp82 in equity.
It also expected to increase by Rp270 trillion as of the end of 2019. The SOEs Ministry has instructed the mining holding company to acquire the shares of PTFI as a subsidiary of the mining holding company.
The mining holding company has become a key strategy for the acquisition of 41.64 percent of PTFI shares – to confirm the Indonesian government as the majority shareholder of 51 percent – at a cost of $5.8 billion without mine reserves or $15.9 billion with mine reserves, located in Grasberg, Papua.
Sampurno said the SOEs Ministry still awaiting the results of negotiations between the Ministry of Energy and Mineral Resources and Freeport McMoran (NYSE: FCX) about the value of PTFI shares, with or without mine reserves as a base for estimation. However, he assures the public that the government is trying to get the best deal of PTFI shares without any mine reserves consideration.
He added, in short term, the new holding will immediately make several corporate actions, some of them: the development of Smelter Grade Alumina Refinery project in Menpawah, West Kalimantan, with 2 million tons capacity per year, East Halmahera Ferronickel Plant Development Project with capacity of 13.500 tons ferronickel per annum, and the development of Steam Electricity Power Plant in every factories of mined products, up to 1.000 megawatts in capacity.
Written by Linda Silaen, Email: email@example.com