China Hanking acquires Northeastern Lion
Friday, December 21 2012 - 05:16 AM WIB
China Hanking Holdings Limited signed on Thursday a share purchase agreement with a wholly-owned subsidiary of Hanking Group to acquire 70 percent equity in Northeastern Lion Limited (Northeastern Lion) nickel mining operation for a total consideration of RMB311.8 million.
"This is a significant acquisition that will further boost the company's long-term strategies of diversifying mining resources and internationalization,? Pan Guocheng, Chief Executive Officer of China Hanking, said on Thursday.
The laterite nickel ore is located at North Konawe Regency, South East Sulawesi Indonesia, which owns world-class resources with high qualities, as well as close proximity to coastline.
According to an independent technical report, Northeastern Lion owns laterite nickel mines at North Konawe regency, South East Sulawesi province of Indonesia, which have measured and indicated nickel resources of 3.75 million tons and inferred nickel resources of 1.04 million tons, through three project companies PT Konutara Sejati (KS), PT Konutara Prima (KP) and PT Karyatama Konawe Utara (KKU).
Moreover, the three project companies own production operation IUP of laterite nickel resources with a term of 20 years respectively, covering an area of 7,869 hectares in total.
Meanwhile, the company has acquired a laterite nickel ore smelter, which is planned to be a base for staff training and continuing improvement of the alchemical technique for laterite nickel ore in the PRC. In addition, the Company also possesses an alchemical technique for laterite nickel mining and metallurgy, which can be applied in Indonesia.
The project companies have also made plans to establish smelters with an annual capacity of 40 thousand tons laterite nickel in Indonesia by the end of 2016 to add values to laterite nickel products produced by the company.
A temporary pier has been established to provide logistics facilities, satisfying the Group's requirement of low-cost operations and promoting the long-term development of the company.
?Northeastern Lion has commenced mining, selling laterite nickel and has gained ample operating experience in the laterite nickel market. Our outstanding alchemical technique for laterite nickel mining and metallurgy can also be applied in Indonesia,? he said.
Editing by Benget Besalicto Tnb.