Nickel Mines to Buy 70% of ANI’s Stake for US$490 Million
Nickel Mines Ltd, a mining company listed on the Australian Stock Exchange, revealed the intention to buy 70 percent of PT Angel Nickel Industri’s (ANI) stake for US$490 million on Friday (10/16) to double its nickel production in the next two years.
Reuters reported that Nickel Mines would buy ANI’s stake from its parent company, Tsingshan Group, the world’s largest stainless steel producer. It would also build four rotary kiln electric furnace lines at Weda Bay Industrial Park (IWIP) in Halmahera, North Maluku.
By becoming ANI’s majority shareholder, Nickel Mines will earn about 25,200 tons of nickel pig iron production per year from its total output capacity of 36,000 tons. Nickel Mines has already paid a US$10 million deposit to Tsingshan’s subsidiary, Shanghai Decent Investment, and will fund the rest through cash, debt, and equity.