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LX International to Acquire an Indonesian Nickel Mine
- 11/09/2023
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- LX International to Invest KRW 133 Billion in the AKP Mine in Sulawesi, Securing a 60% Ownership Stake and Management Control
LX International is set to acquire an Indonesian nickel mine with a KRW 133 billion investment. As a result, the company's strategic initiatives to transition from coal to critical minerals like nickel for the core of the resource business are anticipated to gain momentum.
On the 7th, LX International (led by CEO Yoon Chun-sung) announced that it had convened a board meeting and approved a proposal to invest KRW 133 billion to acquire a 60% stake and management control in the Indonesian AKP mine.
The AKP mine is a nickel mine located near the Morowali Industrial Park on Sulawesi Island, Indonesia. The mining area spans 2,000 hectares, which is seven times the size of Yeouido Island in Seoul (290 hectares). Among the 51.4 million tons of total resource reserves, the verified ore reserves amount to 36 million tons, which equates to the resources needed for over 7 million electric vehicles.
Furthermore, the AKP mine boasts an exceptional location as an active mine, benefiting from the nearby nickel refining facilities, along with a well-established infrastructure for mining operations, including haul roads, storage areas, and a harbor.
LX International is set to conclude the acquisition by making the necessary payment by early next year and stabilizing operations through a phased increase in production. The company has set an ambitious target to more than double its annual production from 1.5 million tons in the previous year to 3.7 million tons by 2028. LX International holds the rights to acquire the entire production output under the offtake agreement.
An official from LX International stated, “We have actively explored investment opportunities in over 200 nickel mines within Indonesia,” and “This nickel asset acquisition marks the beginning of our strategy to consistently secure additional assets under consideration, as we transition our primary focus in resource operations from coal to critical minerals like nickel, essential for secondary batteries.
The spokesperson further highlighted, "Due to the US Inflation Reduction Act (IRA), Indonesia's role as a primary nickel supplier has been significantly bolstered,” and "Leveraging over 40 years of experience in Indonesia and a proven track record in successfully developing and operating coal mines, we will remain entirely committed to strategically nurturing the minerals and materials business for secondary batteries.”
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