Interest in electric vehicle ecosystem continues to grow. Indonesia is a hotspot in the ecosystem because of its nickel resources. Who controls the resources? We have identified some groups or business families with interest in the sector.
Today we talk about the family of Johan Lensa, former owner of coal mining contractor Bukit Makmur Mandiri Utama (BUMA). Johan Lensa and his son Jimmy Budiarto, as you know, controls PT J Resources Asia Pacific Tbk (PSAB), a gold miner with market value of Rp5.93 trillion, only one tenth of nickel producer Vale Indonesia (INCO).
Lensa’s family has at least two companies engaged in nickel business. They are:
1/ BUMANIK (Bukit Makmur Istindo Nikeltama): Bumanik has permit to operate 4,998 hectares of nickel concession in Morowali Regency, Central Sulawesi province, which is home to major nickel processing investments led by Tsingshan Group. Bumanik’s website quoted an estimation by CSA Global that total resources amounted to 129 million tons for Limonite and Saprolite (average Ni 1.31%). (Source: bumanik.co.id)
Website of Bumanik also pointed to its role as nickel ore supplier for PT Virtue Dragon Nickel Industry (VDNI), which invested billions of USD in Southeast Sulawesi, for the development of tens of RKEF smelters producing nickel-pig-iron (NPI). In the location, PT Obsidian Stainless Steel has also developed a stainless steel factory (400,000 tons per annum), steel slab (800,000 tons per annum), and ferronickel (800,000 tons per annum).
2/ PT Sulawesi Cahaya Mineral (ex Rio Tinto’s Lasampala Project): This company is controlled by Jimmy Budiarto, son of Johan Lensa. PT Sulawesi Cahaya Mineral (SCM) is an Indonesian owned company with total Mining Business Permit (IUP) of 21,100 hectares, located within Routa Sub-district, Konawe Regency, Southeast Sulawesi, Indonesia. Previously Rio Tinto as the project former owner published a total of 162 million tons of 1.62% Ni ore and internally calculation shown a potential of 349 MT of lateritic nickel ore for whole potential area in the tenement. (Source: smnickel.com)
The government initially granted 50,700 hectares fo PT SCM, but it was first downsized by 6,633 hectares to 44,067 hectares in 2012 by then minister of energy & mineral resources Jero Wacik. Series of downsizing led to the current area of 21,100 hectares. Given size of most nickel IUP is less than 10,000 hectares, one wonder whether the government will downsize SCM’s concession further.
Still, having a combined of 25,000 hectares of nickel concession placed Lensa family in a very strategic position. For a comparison, Harum Energy (HRUM) has just acquired 51% shares in PT Position, which only has 1,161 hectares of nickel concession in Halmahera Timur (North Maluku province), for US$80.33 million. Lensa’s nickel concessions might worth billions of US dollars.
DISCLAIMER: NO POSITION IN STOCKS MENTIONED IN THIS ARTICLE
