China's GEM seeks to double stake, take control of Indonesia nickel project

Hanwa

04/01/2021 04:29

BEIJING, Jan 4 (Reuters) - Chinese electric vehicle battery
firm GEM Co Ltd  002340.SZ  said on Monday it aims to double its
stake in an Indonesian nickel project, becoming the majority
investor to strengthen "strategic control" of the resources amid
a nickel shortage. 
    Under a framework memorandum of understanding (MoU), GEM
said in a statement, the firm's Jingmen unit has agreed with
partners in the project at Indonesia's Morowali Industrial Park
to increase its holding to 72% from 36%.  urn:newsml:reuters.com:*:nL4N2JF05F 
    Financial terms of the MoU, which has yet to be finalised,
weren't disclosed. It wasn't clear when the MoU might be
implemented.
    The plant, designed to produce chemicals used in batteries
for electric vehicles with annual capacity at 50,000 tonnes, was
expected to start production by end-2020, but was delayed due to
the coronavirus pandemic. 
    An official at GEM's investor relations office said part of
the capacity will start production in 2022. 
    GEM had planned the project together with stainless and
nickel maker Tsingshan Group, a unit of Contemporary Amperex
Technology Ltd (CATL)  300750.SZ , Japanese trading house Hanwa
Co Ltd 8078.T  and PT. Indonesia Morowali Industrial Park (IMIP)
in 2018.  urn:newsml:reuters.com:*:nL3N27L0XX
    Alongside GEM unit Jingmen's current 36% stake, the CATL
unit holds 25%, Tsingshan has 21% and the remaining shares are
held by IMIP and Hanwa.
    Under the MoU, Jingmen will increase its stake in units of
CATL and Tsingshan by 60% and 100% respectively, lifting its
overall ownership of the Indonesia project to 72%. IMIP and
Hanwa's stakes will be directly affected by the deal.
    CATL, Hanwa and IMIP did not answer phone calls seeking
comment, while Tsingshan declined to comment.     

 (Reporting by Min Zhang and Shivani Singh; Editing by Kenneth
Maxwell)
 ((min.zhang@thomsonreuters.com; (8610) 5669-2105;))