Indonesian coal producer Harum Energy has purchased a majority stake in an Indonesian nickel processing and refining business.
Under the deal, Harum has purchased a 51pc stake in Indonesia's Blue Sparking Energy For $206mn. Blue Sparking Energy is located in north Maluku province and is engaged in nickel processing and refining and is currently also involved in a high-pressure acid leaching (HPAL) project to produce nickel-cobalt hydroxide. The HPAL project has a nameplate production capacity of approximately 67,000 t/yr of nickel equivalent and 7,500 t/yr of cobalt.
The latest acquisition comes after Harum raised its stake in Indonesian nickel smelter Westron Metal Industry to become a majority 60.7pc shareholder in January this year.
Harum's main business is in coal mining, haulage, coal crushing and barging. It had set a 2023 coal output and sales target of 6mn t, with China typically its main export market.
A number of Indonesian coal producers have announced plans to diversify their business interests away from coal in recent years.
Indonesian coal producer Adaro Energy in November last year said that it had firmed up its diversification plans as part of a broader goal to shift its core business away from thermal coal by up to 2030.
Adaro will focus mainly on expanding its metals business and growing its power generation vertical market with a large-scale hydropower project already in the works.
Fellow Indonesian coal producer Indika is looking to accelerate its diversification into other industries, it said, as part of a plan to increase the share of its non-coal revenue to 50pc by 2025, although it will continue to fulfil its coal supply obligations to clients with long-term supply contracts.
Indonesian producer Geo Energy has previously said that it is looking at various opportunities as part of its diversification plans, and to expand its revenue streams by way of potential joint ventures and acquisitions in the areas of renewable supply chains, downstream logistics and transshipment.
By Andrew Jones
