https://www.engineeringnews.co.za
Engineering|Export|Projects
Engineering|Export|Projects
engineering|export|projects

Glencore to back Indonesia nickel miner Ceria Nugraha before IPO

12th June 2024

By: Bloomberg

  

Font size: - +

Indonesian nickel miner PT Ceria Nugraha Indotama is set to get backing from Glencore to build a battery metal plant ahead of an initial public offering planned for next year.

Glencore is in talks to take a 10% stake in the company through a pre-IPO fund-raise, and will assist in financing its high pressure acid leach plant, Ceria Nugraha CEO Derian Sakmiwata said in an interview on Wednesday. The world’s biggest commodities trader will also sign an offtake agreement to buy electric vehicle battery ingredients from the Indonesian firm, he said.

“We want to reach the global market,” Sakmiwata said on the sidelines of the Shanghai Metals Market conference in Jakarta. “Glencore is our bridge,” he said, adding that 20% of the company is being offered as part of the pre-IPO fund-raise.

Glencore didn’t immediately respond to a request for comment.

The global miner and trader, headquartered in Switzerland, is stepping up its participation in the Indonesian nickel industry, which accounts for about half of world production. It’s also among companies eyeing a stake in miner PT Trimegah Bangun Persada, better known as Harita Nickel.

A ban on the export of raw ore in 2020 stimulated a massive wave of Chinese investment in nickel smelting in Indonesia that caused production to surge and benchmark prices to crash. Unusually, no Chinese firm has an equity stake in Ceria’s projects, although China ENFI Engineering has been contracted to build them.

It’s something the Indonesian firm — which owns the country’s fifth-largest nickel mine — wants to maintain for now so that its product will be eligible for subsidies linked to the US’s Inflation Reduction Act. While the exact rules around joint ventures remain unclear, it’s possible they could be excluded if too high a percentage is owned by a Chinese entity.

“We are not ruling out the Chinese, but we want our product to be acceptable in global markets,” Sakmiwata said.

Ceria Nugraha’s first smelter is due to be completed this year, and it’s planning $8-billion of investment in a series of processing plants that will produce nickel and cobalt chemicals used for EV batteries. Part of that will be funded by listing the company’s shares in an IPO next year.

Macquarie Group, BNP Paribas, and Mandiri Sekuritas have been appointed as advisers for the listing, Sakmiwata said. Before the IPO, the company will raise funds through private sales, including from Glencore, he said.

Edited by Bloomberg

Comments

Showroom

ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.272 0.324s - 190pq - 2rq
Subscribe Now