Harum Energy's Subsidiary Mining Company Owned By Conglomerate Kiki Barki Buys Shares Of Smelter Owner In Weda Bay IDR 1.07 Trillion

Illustration. (Photo: Unsplash)

JAKARTA - The mining company owned by conglomerate Kiki Barki, PT Harum Energy Tbk (HRUM) through its subsidiary, PT Harum Nickel Industry (HNI), took part in 250,000 new shares of PT Westrong Metal Industry (WMI).

This amount represents 20 percent of WMI's total issued and paid-up capital with a purchase price of US$75 million (approximately IDR 1.07 trillion) on 27 April 2022. HRUM President Director Ray A Gunara explained, WMI is a limited liability company engaged in nickel refining (smelters).

"WMI's smelter using rotary kiln electric furnace (RKEF) technology is planned to be built this year along with the infrastructure in the Weda Bay Industrial Area (Indonesia Weda Bay Industrial Park) in Central Halmahera Regency," Ray said in information disclosure on the website of Indonesia Stock Exchange (IDX), quoted on Tuesday 10 May.

The annual production capacity, he continued, is between 44,000-56,000 tons of nickel in the form of ferronickel/nickel pig iron.

"The purpose of the transaction carried out by the company is to further develop and expand the company's business activities into the nickel industry, which is the realization of the company's long-term business diversification strategy," added Ray A Gunara.