Ann: Quarterly Activities Report, page-24

It would be excellent if this were true, but I can't find any online source that suggests that it is. Are you able to provide one? I personally would not be taking GMC's word for it.

There was a brief period where company's conducting smelting activities could retain up to a 60% stake (See Divestment obligations), in which case you would be correct, but this was later reversed. That article is dated March 2017.

The mining regulations appear to have flip-flopped a fair bit. Another article from October 2016 suggests foreign companies may now maintain a 51% controlling stake (See Divestment), but by January 2017 this was no longer the case (See Updated divestment requirements):

I can find several references to a Chinese nickel smelter operator considering suing the Indonesian government over the changes to the mining law, so I would assume that a smelter operator is indeed considered a mining company. That seems like common sense either way.


Correct or not, divestment isn't a deal breaker. It's not like GMC will be stripped of an asset. The Kupang Smelter Project will be gradually divested at fair market value. At least 20% after 6 years, 30% after 7 years, 37% after 8 years, 44% after 9 years and 51% after 10 years. This starts at 5 years, when GMC plan to have 8 smelters operational. i.e. they will receive maximum value for their asset - provided manganese prices are favourable.

It would be an added bonus if the proceeds were in part distributed back to shareholders by way of dividend. At one point in time, GMC were promising 50% of profits would be distributed, although they have long since removed this commitment.

The project metrics at 2 smelters are impressive enough. At 8 smelters they're phenomenal. A 49% stake would be equivalent to 4 smelters: