JAKARTA - PT Merdeka Mining Indonesia (MMI), a subsidiary of PT Merdeka Copper Gold Tbk (MDKA), has signed a heavy equipment rental agreement with three other subsidiaries of MDKA. They are PT Gorontalo Sejahtera Mining (GSM), PT Pani Bersama Tambang (PBT), and PT Mentari Alam Persada (MAP).

According to the information disclosure yesterday (3/1), the total transaction value is estimated to IDR 1.67 trillion. This transaction includes heavy equipment rental between MMI and GSM worth IDR 446.94 billion, MMI and PBT of IDR 1.2 trillion, as well as MMI and MAP of IDR 21.83 billion.

This agreement will be effective for the next four years. “The heavy equipment rental will continue until December 31, 2028,” the management of MDKA confirmed in the official disclosure.

“The transaction is not a material transaction as stated in POJK No. 17/2020, as the value does not reach 20% of total equity of the company,” added the management.

However, this transaction is categorised as an affiliate transaction, as MMI, GSM, PBT, and MAP are all controlled entities under MDKA, with stock portions of over 70% each.

In regard to MMI’s business activities, MDKA is known to further underline MMI’s role as a sub-holding for operational activities of high-grade nickel matte conversion facility and consolidation of Rotary Kiln Electric Furnace (RKEF), just as revealed through the official release in Indonesia Stock Exchange yesterday (3/1).

MDKA also reportedly carried out its internal restructuring through a transfer of its portions in PT Huaneng Metal Industry (HNMI) and PT Zhao Hui Nickel (ZHN) to MMI on December 29, 2023. The management admitted that it is in order to increase efficiency and effectiveness of operation and corporate governance. (ZH)