The mining holding company MIND ID is currently awaiting approval for an overseas direct investment (ODI) from the Chinese government regarding the continuation of the HPAL smelter project, a joint venture between PT Aneka Tambang Tbk. (ANTM) and the consortium of Contemporary Amperex Technology Co. (CATL). 

MIND ID President Director Hendi Prio Santoso revealed that the company is waiting for the ODI approval from the Chinese government related to the continuation of the HPAL smelter project in collaboration with PT Aneka Tambang Tbk. (ANTM) and the CATL consortium.

Hendi said that the state-owned mining holding company wants to ensure that the downstream nickel ore project for battery production continues, along with several other global partners, including CATL. "We are still waiting for the ODI approval from their government [China]," said Hendi when met in Jakarta on Thursday (21/11/2024).

On the other hand, Hendi stated that Antam's capital expenditure (capex) plan for this project will be allocated starting next year. 

As previously reported, the company with the stock code ANTM has appointed BNP Paribas China as the lead arranger to secure banking financing for the nickel smelter project in partnership with the CATL consortium. 

Antam's Business Development Director, I Dewa Bagus Wirantaya, said the company is currently evaluating the capacity of lenders that will finance the smelter project together with CATL. 

Dewa hopes that financing certainty from lenders will be secured by the end of this year. This way, the smelter construction project can proceed next year. 

“We are currently in the due diligence process, selecting banks, both foreign and Himbara [state-owned banks], and we will combine both,” said Dewa when met after ANTM's Extraordinary General Meeting of Shareholders (RUPSLB) in Jakarta on Wednesday (13/11/2024).

The plan is for Antam to take a loan for 60% of the funding, with the remaining portion to be covered by the company's equity. 

The share distribution between ANTM and the CATL affiliate for the RKEF smelter and industrial area at PT Feni Haltim (FHT) will be 40% and 60%, respectively.

Meanwhile, Antam's ownership in the HPAL smelter has decreased to 30%, with the remaining stake held by CATL’s affiliate. 

As is known, the collaboration between Antam and CATL has an investment value of US$5.8 billion, or approximately Rp90.50 trillion (assuming an exchange rate of Rp15,605 per US dollar). 

The project spans from the upstream mining area, RKEF plant and industrial zone, HPAL plant, battery material plant, battery cell plant, to the battery recycling plant. 

"It is hoped that by the end of 2024, all of this can be realized well, so that the first phase of construction can take place in the following months," he said.