United Tractors Completes Transaction to Acquire 19.99% Stake in Nickel Industries Limited (NIC)

On September 21, 2023, PT United Tractors Tbk (“the Company”), through its wholly-owned subsidiary, PT Danusa Tambang Nusantara (“DTN”), completed a transaction with Nickel Industries Limited (NIC) to take up 857 million new ordinary shares issued by NIC. The total value of the transaction is AUD$942.7 million.

NIC is a leading integrated nickel mining and processing company with key assets located in or near the Indonesia Morowali Industrial Park (“IMIP”), Sulawesi, and Indonesia Weda Bay Industrial Park (“IWIP”), Halmahera. NIC owns an 80% stake in PT Hengjaya Mineralindo (a nickel mining company) which is one of the largest suppliers of limonite and high-grade saprolite ore to IMIP. NIC has a majority stake and operates twelve Rotary Kiln Electric Furnace (“RKEF”) lines.

According to the Half Year 2023 Reports submitted by NIC, throughout the first semester of 2023, NIC has produced 59,957 tons of nickel metal consisting of 49,792 tons of Nickel Pig Iron (NPI) and 10,165 tons of Nickel Matte from its owned smelter facilities and has mined 5.2 million Wet Metric Tons (WMT) of nickel ore consisting of 1.4 million WMT of saprolite ore and 3.8 million WMT of limonite ore from the Hengjaya nickel mine.

The company’s strategic action in taking a 19.99% stake in NIC is an important step in diversifying and expanding its business in the mineral industry.

United Tractors’ Overview

PT United Tractors Tbk (UT) is Indonesia’s largest heavy equipment distributor, established in 1972. The Company operates in five business areas: Construction Machinery, Mining Contracting, Mining, Construction Industry, and Energy. Additionally, UT is committed to promoting sustainability and achieving Sustainable Development Goals (SDGs).

ESG United Tractors

As a world-class heavy equipment, mining, and energy company, UT has been operating in Indonesia for over 50 years. The company is committed to creating a sustainable future for Indonesia by effectively applying ESG principles. UT aims to pay attention to the environment, positively impact society, and uphold good corporate governance at all levels of its business operations. The company also strives to optimize its competencies, expertise, and strategic assets to bring added value to all stakeholders and the Indonesian people.