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China's GEM assumes control of nickel processor BNSI
A Chinese battery and materials recycler has become the majority owner of Bahodopi Nickel Smelting Indonesia (BNSI), the developer of a nickel processing facility in the Bahodopi Block in Morowali, Central Sulawesi, thereby reducing the stake of PT Vale Indonesia.
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Excavators transfer soil to transportation trucks at a nickel mine operated by nickel mining company Vale Indonesia in Sorowako, South Sulawesi, on July 28, 2023. (AFP/Hariandi Hafid)
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hina’s GEM, a battery and materials recycler, has become the majority owner of Bahodopi Nickel Smelting Indonesia (BNSI), the developer of a nickel processing facility in the Bahodopi Block in Morowali, Central Sulawesi.
GEM, through its subsidiary GEM Hong Kong International Co. Ltd., bought just over 1 million new shares worth around Rp 1 trillion (US$60 million) in BNSI, which was previously controlled by PT Vale Indonesia, according to a material information report issued on Wednesday.
The nickel mining giant bought another 163,260 new shares in BNSI, the report adds, and now holds a total of 960,885 shares worth about Rp 961 billion in the joint venture.
After completing the subscription of new shares, BNSI’s financial statements will not be consolidated in Vale Indonesia’s financial statements.
The move dilutes the share of Vale Indonesia, which is now left with 49 percent.
“This transaction will not affect the company's operational activities, legal matters, financial condition or business continuity,” Vale Indonesia CEO office chief and corporate secretary Wiwik Wahyuni said in the report.
Read also: Vale Indonesia and partners advance joint project in Bahodopi Block
