Hmmm not sure I agree with what he's told you. I'm going by what is released via ASX announcements and my understanding is
GMC owned PT Gulf Mangan Grup 100%, which owns the smelters and project.
GMC needed money so they gave up 25% ownership in the project (PT Gulf Mangan Grup) and in return PT Gulf Mangan Grup received $5M loan (securitised against the two refurbished smelters
Now GMC own 75% PT Gulf Mangan Grup.
If PT Gulf Mangan Grup can't pay back the loan, then GMC lose the smelters