Magnus Energy Has Signed A Number Of Nickel Mining And Shipping Agreements in Indonesia

Magnus' wholly-owned subsidiary MEG Harta Indonesia(MHI) signed an agreement on June 14 to mine and supply nickel ore from the Kolaka mine in Sulawesi. Mitsubishi Heavy Industries and another private Indonesian company called Company A are the buyers. The sellers are entities owned by the Government of the Sulawesi Region and two Indonesian private companies.

Magnus said it could not identify the parties for confidentiality reasons and without their consent. The seller has agreed to sell an initial 20, 000 tonnes of nickel ore - with a possible increase or decrease of 10 per cent. The buyers -- MITSUBISHI Heavy Industries and Company A -- have the option to purchase more as the number of shipments increases.

Mhi also signed A separate agreement with COMPANY A on June 13 to jointly sell and transport nickel ore. Company A holds A license to transport and sell nickel ore. Mhi will be responsible for procuring the nickel ore and getting it ready for shipment, covering the cost of hiring the docks and loading the nickel ore onto barges or ships. Both parties will cooperate for 12 months from the date of signing the agreement.

In addition, Company A entered into an agreement on 15 November 2021 to sell nickel ore extracted from Kolaka to A third party smelting company. The nickel ore sales period of the agreement is until January 15, 2023.