LYGEND RESOURCE (02245) Subsidiary Signs Agreement to Establish Indonesian Joint Venture for Wet Slag Processing Business

Stock News
Jan 13

On January 13, 2026, BBS and BMS entered into the BJL Shareholders' Agreement to establish the joint venture company BJL. The formation of the BJL joint venture is intended to meet the company's business development needs and to apply for necessary Indonesian tax incentives. According to the BJL Shareholders' Agreement, the initial investment amount for BJL is approximately USD 505 million, with an authorized capital of IDR 1,329,888 billion. The capital injection will be made by the BJL contracting parties in accordance with their respective shareholding percentages in BJL, specifically 99.999925% will be held by BBS and 0.000075% will be held by BMS. The BJL contracting parties intend to establish BJL to align with the company's business development requirements and to qualify for Indonesian tax incentives, which is expected to reduce the tax burden costs of the wet slag processing business in the future, representing an optimization of the specific execution plan. The project includes a wet slag processing plant with an annual capacity of 1.34 million metric tons for treating HPAL smelting slag, along with a slag storage facility and other supporting infrastructure. This project will enable the group to reduce waste and utilize resources effectively while adhering to environmental protection principles. Furthermore, given Indonesia's continuously increasing infrastructure budget and the anticipated corresponding rise in demand for HPAL smelting slag treatment, the wet slag processing business is expected to create a new revenue stream and enhance the group's profitability. As of the date of this announcement, BMS is a wholly-owned subsidiary of the company. BBS is a non-wholly-owned subsidiary of the company, directly and indirectly owned 57.49776% and 42.50224% by the company and TBP, respectively.

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