Indonesian coal mining company PT Harum Energy TBK (HRUM) has now invested $149 million to diversify its nickel-related businesses, according to a public report released by the company's management in June.
As for the allocation of funds, Hrum management stated that $80 million will be used to acquire shares in PT Position (POS) and another $69 million will be used to acquire shares in the PT Infei Metal Industry (IMI) nickel smelter. The two companies were joined by an additional A $45m acquisition of approximately 6.73 per cent of Nickel Mines Limited, an Australian producer of Nickel pig iron (NPI).
Hrum currently owns 51% of PT Position through acquisition, which has been consolidated into the company's financial statements. Hrum owns a Nickel mine through PT Tanito Harum Nickel (THN), the business entity of PT Position. At the same time, PT Position holds a nickel mining operation license (IUP) for Weda Bay with a total concession area of 4,000 hectares. PT Position, which began construction in late 2020 and is currently in pre-operational condition, is expected to become commercially operational in the second half of 2022 with an estimated annual nickel production of approximately 1 million wet tons.
In addition, Hrum has an indirect 24.5% stake in the PT Infei Nickel Smelter, which it plans to mine from PT Position for further processing, which is still in the exploration phase. For the PT INFEI operation, HRUM management stated that it is expected to become commercially operational in the first quarter of 2022 and its contribution is expected to become visible in 2023 with an estimated annual NPI production of approximately 10,000 tonnes.
