CATALIST-LISTED Indonesian nickel mining group Silkroad Nickel announced that its subsidiary PT Teknik Alum Service (PT TAS), and PT Artabumi Sentra Industri (PT ASI) have entered into a non-binding heads of agreement with PT Anugrah Tambang Smelter for its entire equity interest.
Through the acquisition, it aims to build and operate smelter facilities for the production of nickel pig iron on the group’s mine site in Sulawesi, Indonesia.
PT Anugrah Tambang Smelter, a limited liability company established under Indonesian law, holds valid principle and location permit licences for the construction of a smelter factory in Buleleng Village, Bungku Pesisir Subdistrict, Morowali Regency, Sulawesi, Indonesia.
PT Anugrah Tambang Smelter has an issued share capital of 12.5 billion rupiah (S$1.2 million) and is 99 per cent owned by PT Bina Mitra Serasi (PT BMS) and 1 per cent owned by Hong Kah Ing, executive director and CEO of Silkroad Nickel.
According to the agreement, PT TAS and PT ASI will acquire 30 per cent and 70 per cent of PT Anugrah Tambang Smelter, respectively. PT TAS will have an option to purchase 21 per cent of the shareholding interests in the target from PT ASI upon fulfilment of certain conditions.