Mitsubishi Corp Acquires Interest in Indonesian Nickel Project

Mitsubishi Corporation announced on Thursday the firm assumed an agreement to acquire the ownership interest of undeveloped nickel project in Indonesia with Elamet, a major ferroalloy maker in France. Mitsubishi acquires a 33.4% share at US$ 145 million from Elamet, which acquires ownership for the first time. Mitsubishi will advance feasibility study with Elamet and develop new nickel source which the mine produces at 65,000 tonnes per year of nickel purity.

Elamet owns 90% of PT Weda Bay nickel and Antam, a major nickel supplier in Indonesia, with 10%. Mitsubishi acquires ownership interest from Strand Mineral, the subsidiary of Elamet. Weda Bay nickel mine has one of undeveloped nickel mine in the world. The mine’s reserve is expected to be about 5.1 million tonnes of nickel purity. Mitsubishi will use a hydrometallurgical process by Elamet and develop nickel mine largely.

Mitsubishi invests in Pacific Metals at 8.5%. Pacific Metals has ownership interest of nickel mine in Philippine. Mitsubishi doesn’t have ownership interest of nickel mine, which is seeking the investment chance for resource exploration in Indonesia or New Caledonia.

Elamet is no.6 nickel supplier in the world with production base at 75,000 tonnes per year. Elamet is no.2 manganese supplier. Antam reserves the right to increase to 25% of nickel ownership interest in Weda Bay.