Magnus Energy Signs Multiple Nickel Mining and Shipping Agreements in Indonesia

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

Magnus stated that for confidentiality reasons, and because the relevant consent of the parties was not obtained, the identities of the parties could not be disclosed. The sellers have agreed to sell an initial amount of 20,000 tonnes of nickel ore – possibly 10% more or less. Buyers - Mitsubishi Heavy Industries and Company A - have the option to purchase more quantities as shipments increase.

MHI also signed another 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. Mitsubishi Heavy Industries will be responsible for procuring the nickel ore and preparing it for shipment, covering the cost of renting a terminal and loading the nickel ore onto a barge or ship. The two parties will cooperate for 12 months from the date of signing the agreement.

In addition, Company A entered into an agreement on November 15, 2021 to sell nickel ore extracted from Kolaka to third-party smelters. Nickel ore sales under the agreement will run until January 15, 2023.