Information Disclosure of Subscription of New Shares in PT Westrong Metal Industry

May 09, 2022
SHARE Facebook Twitter

On 27 April 2022, PT Harum Nickel Industry (“HNI”), one of the subsidiaries of PT Harum Energy Tbk. (the “Company”) has acquired 250.000 new shares in PT Westrong Metal Industry (“PT WMI”) which represent 20% of the total issued and paid-up capital of PT WMI, with a subscription price of USD75,000,000.

PT WMI is a limited liability company established in accordance with the laws of Indonesia and is engaged in the nickel refining business (smelter). The smelter to be constructed by PT WMI will utilize the rotary kiln electric furnace (RKEF) technology and the construction will soon start  this year together with its power infrastructure within the Weda Bay Industrial Park in Central Halmahera Regency.  The annual production capacity of the smelter at PT WMI is designed to be between 44,000 – 56,000 tons of nickel in the form of ferronickel/nickel pig iron, and it is expected to commence commercial production in 2 years.

The purpose of this transaction is to further develop and expand the Company’s business activities in the nickel industry, which is a realization of the Company's diversification strategy of its long term business.

There is no material impact from the above subscription of new shares toward the operational activities, legal, financial condition or business continuity of the Company.