Indonesian nickel mining company PTPAM MineralTBK (NICL) was recently listed on the Indonesian Stock Exchange (IDX) by issuing 2 billion shares to the public, representing 20.7% of the company's issued and fully paid-up capital. It eventually received Rp200bn in new funding at Rp100 a share. NICL plans to increase nickel reserves exploration and is funded by an initial public offering (IPO).
In a written statement on July 9, PAM Minerals President Ruddy Tjanaka explained that approximately Rp72 billion /30% of the IPO proceeds, net of emissions costs, will be used to develop the business of the company and its subsidiary PT Indrabakti Mustika (IBM). The company will explore for nickel at its mining operations license (IUP) in Morowali, covering a total area of about 51 ha in the Bcl, Raisa, Kartini, Tiara and Syahrini work blocks.
Approximately 70% of the funds are used by PT Indrabakti Mustika (IBM) subsidiaries for Kolaka Cendana, Longori, Silae, Komia, Kuma, Kondole in North Conaway with a total area of about 183 hectares The nickel ore reserves are mined in detail by intensive drilling. Both business developments are scheduled to begin in the second half of 2021.
In 2022, nickel demand is expected to outstrip supply, Ruddy said, a huge growth potential for the company given that only a small portion of the region is currently being developed. NICL expects the market share of EVs to increase from 2.5% in 2019 to 10% in 2025, and even to 28% in 2030 and 58% in 2040.
In addition, PT PAM Mineral TBK said that since it began mining nickel in 2008, Mainly active in Langgikima District in southeastern Sulawesi, Lameruru Village in North Conaway Regency District and Laroenai Village in Bungku Pesisir District in central Sulawesi, Appoint PT Danatama Makmur Sekuritas as the executive underwriters (the underwriters also include PT Artha Sekuritas Indonesia, PT Henan Putihrai Sekuritas, PT Waterfront) Sekuritas Indonesia, PT Panca Global Sekuritas, PT Reliance Sekuritas Indonesia TBK and PT Value Inti Sekuritas).
Ruddy said the company has started selling low-grade nickel to factories and has tried to follow every government policy that sets the cost price of nickel products. But given that the Indonesian nickel market is only about 50% of the global nickel price, it is hoped that the government will offer a more reasonable price for nickel in the future, which is closer to the global market.
PT PAM Mineral TBK (NICL) is targeting nickel sales of 1.3 million tonnes in 2021, an increase of 87.04% over the 695,034 tonnes achieved in 2020; On the production side, according to the work plan and budget (RKAB), NICL and its subsidiaries aim to be able to produce 1.5 million tons of nickel.
