Mitsubishi to sell stake in Weda Bay nickel project to Eramet
Monday, April 25 2016 - 11:33 AM WIB
Japanese firm Mitsubishi Corporation (MC) announced on Monday it has agreed to transfer all its shares (30 percent) in Strand Minerals (Indonesia) Pte Ltd to French firm Eramet SA, Strand?s largest shareholder.
Strand owns 90 percent of PT Weda Bay Nickel, the entity undertaking the development of the Weda Bay nickel project in Indonesia.
MC has been carrying out a feasibility study since joining the project in February 2009 and has decided to sell all its shares to Eramet, in accordance with the shareholders? agreement, because the criteria for project development have not been met.
MC said it is continuously reviewing its portfolio, corresponding to the business environment for mineral resources.
Previously Eramet owned 66.6 percent of Strand Minerals, while Mitsubishi had 30 percent stake, and Pamco 3.4 percent.
The Weda Bay deposit is one of the largest nickel deposits in the world. Its measured, indicated, and inferred resources are valued at more than 9.3 million tons of nickel, an increase of more than 5 million tons compared with estimates made when Eramet acquired Weda Bay in May 2006. IDX-listed mining firm PT Aneka Tambang Tbk holds a 10 percent stake in the project.
Editing by Johannes Simbolon