China?s Nickel Resources to acquire mining asset for US$265.65m

China's Nickel Resources Holdings Co Ltd said it will buy a maximum of 80 percent equity stake in PT Yiwan Mining, an Indonesian iron-nickel ore company for HK$2.067 billion (U$265.65 million), as part of the company?s move to secure mineral resources.

The acquisition will be done through the purchase of convertible bonds issued by Yiwan worth HK$1.91 billion and the balance will be paid in cash.

Pursuant to the mining business license granted by the Indonesian government, Yiwan Mining has construction, production, transportation and sale, processing and refining rights to conduct mining activities for a period of approximately 27 years from June 29, 2009 until January 24, 2036.

The Mine is an iron-nickel deposit, covering an area of approximately 4,001 hectares with area code TB.06 JANPR 02, located in the Village of Mekarsari, the District of Simpang Empat (formerly Batulicin), Regency of Tanah Bumbu, in the Province of South Kalimantan. The estimated mineral resources (according to JORC classification) reached approximately 177 million tonnes. (romel)