Disclosure of Information on the Subscription of Shares in PT Blue Sparking Energy
Apr 01, 2024
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On 27 March 2024, PT Harum Energy Tbk. (the “Company”) through its subsidiary, PT Tanito Harum Nickel (“THN”), has subscribed for new shares issued by PT Blue Sparking Energy, an Indonesian limited liability company which is engaged in the nickel processing and refining business (“BSE”), and is currently developing a High-Pressure Acid Leaching (“HPAL”) project located in the Indonesia Weda Bay Industrial Park in Central Halmahera Regency, North Maluku Province. The HPAL project of BSE is designed to produce nickel-cobalt hydroxide intermediate product (MHP – Mixed Hydroxide Precipitate) with an annual nameplate production capacity of approximately 67,000 tonnes (±10%) of nickel equivalent and approximately 7,500 tonnes (±10%) of cobalt, together with its supporting facilities and infrastructure. The share subscription is carried out through conversion of part of the loan extended by THN to BSE into shares in BSE based on the Loan Facility Agreement dated 29 September 2023 which information disclosure related to such facility has been made by the Company on 2 October 2023.
In this transaction, BSE issued 1,040,817 new shares, as implementation of the conversion of loan in the amount of USD206.169.037 or its equivalent in Rupiah to become 51% shares in the issued and paid-up capital of BSE.
The shares ownership in BSE before and after such transaction shall be as follows:
Currently the BSE project is still in a construction stage, and is targeted to commence commercial operation in early 2026.
There is no material impact from the above transactions toward the operational activities, legal, or business continuity of the Company.
The above transaction constitutes part of the Company’s efforts to diversify its business through investments in the nickel sector. In addition, from a product diversification aspect, after BSE commences commercial operation, the Company will be able to produce nickel-cobalt hydroxide intermediate (MHP – Mixed Hydroxide Precipitate) which is expected to open new market opportunities for the Company and provide higher added value than the nickel products currently produced by the Company’s existing smelters.
From the financial aspect, after the completion of THN’s subscription of new shares issued by BSE as outlined above, starting from 27 March 2024, the financial statement of BSE (including balance sheet and profit and loss statement) as a subsidiary will be consolidated into the Company’s consolidated financial statement as the parent company going forward. Therefore, the consolidated financial statement of the Company in the future will also reflect the contribution from BSE’s financial performance.