JAKARTA. PT Harum Nickel Industry (HNI), one of many subsidiaries of PT Harum Energy Tbk (HRUM), has distributed a loan facility worth USD 90 million to PT Westrong Metal Industri (WMI).

The agreement signing was carried out by HNI and WMI on September 27, 2023. This loan facility will be used by WMI to finance its capital expenditure, working capital, as well as corporate’s general financing and investment.

The management of HRUM mentioned that this facility is equipped with an interest rate for the outstanding principal of SOFR + 2.60% per annum. “It starts from each withdrawal of the loan until said principal is entirely paid off,” added the management in the official release.

According to IDNFinancials data, WMI is a company engaged in the nickel smelting industry. As of now, WMI is building a smelting facility with a Rotary Kiln Electric Furnace (RKEF) technology in Weda Bay Industrial Zone, Central Halmahera. This smelter is targeted to have an installed capacity of 56 thousand tons of nickels per annum.

For the record, WMI is affiliated with HNI due to similar shareholder. As of now, 20% of WMI’s shares are owned by HRUM, while 99% of HNI are controlled by HRUM. (KR/ZH)