Unit of Singapore Catalist listed’s Silkroad Nickel Ltd.,(SGX: STP) signed a head of agreements to form a joint venture for smelter facilities construction in Morowali, South Sulawesi, said the company on Tuesday (Sep 18). The definitive agreements are expected to be signed no later than six months.
An Indonesian nickel mining group, announced that its subsidiary, PT Teknik Alum Service (TAS) and PT Artabumi Sentra Industri1 (PT ASI) entered into a non-binding agreement to acquire 100 percent shares of owner of local miner PT Anugrah Tambang Smelter (ATSM).
Through ATSM, Silkroad said, has plan to build and operate smelter facilities for the production of nickel pig iron on the group’s mine site in Morowali. ATSM currently holds valid principle and location permit licenses for construction of a smelter factory in Buleleng Village, Bungku Pesisir Subdistrict, Morowali regency.
ATSM has an issued share capital of Rp12.5 billion (US$862,069) and is 99% and 1% owned by PT Bina Mitra Serasi (BMS) and Hong Kah Ing, executive and chief executive officer of the company, respectively. BMS is 4% and 96% owned by Hong and his spouse, respectively.