Glencore plans to back Indonesian nickel miner to build battery metal plant
Glencore Plc is set to back Indonesian nickel miner PT Ceria Nugraha Indotama to build a battery metal plant ahead of the mining company’s initial public offering planned for 2025.
“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”, Derian Sakmiwata, CEO of Ceria Nugraha, told Bloomberg in an interview.
He also added that Glencore will sign an offtake agreement to buy electric vehicle (EV) battery ingredients from the Indonesian firm.
On the sidelines of the Shanghai Metals Market conference in Jakarta, Sakmiwata said, “We want to reach the global market. Glencore is our bridge.”
Read more: Shareholders back Glencore’s 2024-2026 Climate Action Plan
Ceria Nugraha’s first smelter is set to be completed this year, with plans for an $8 billion investment in a series of processing plants to produce nickel and cobalt chemicals for EV batteries. Part of this investment will be funded by listing the company’s shares in an IPO next year.
According to Sakmiwata, Macquarie Group Ltd., BNP Paribas SA, and Mandiri Sekuritas have been appointed as advisers for the listing. Before the IPO, the company will raise funds through private sales, including contributions from Glencore.
Read more: Sustainable investment opportunities open in Indonesia, says minister
Glencore is increasing its involvement in the Indonesian nickel industry, which contributes to about half of the world’s production. It is also among the companies considering acquiring a stake in PT Trimegah Bangun Persada, commonly known as Harita Nickel.
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