PT Harum Energy, an Indonesian coal mining company, has strategically expanded into the nickel sector by acquiring a controlling 51% stake in PT Blue Sparking Energy. This move, detailed in a stock exchange filing, involves the conversion of a loan to the nickel processing company into equity, with Blue Sparking issuing new shares valued at approximately $206 million for the swap.
Blue Sparking Energy is in the process of developing a high-pressure acid leach plant located in an industrial park in Weda Bay, North Maluku province. This facility is poised to produce a lower carbon variant of nickel, highly sought after by electric vehicle (EV) manufacturers, highlighting the increasing demand for sustainable battery metals.
This acquisition marks Harum Energy’s continued foray into the battery metals sector, following its recent increase in stake in Westrong Metal Industry, a company that operates a nickel smelter within the same industrial area, in January.
The shift of Indonesian coal miners towards metals crucial for the energy transition reflects a broader trend among these companies. They are leveraging their coal-generated revenue to adapt and thrive in a changing energy landscape.
Notably, PT Adaro Energy Indonesia is venturing into aluminum smelting in Kalimantan, while PT Indika Energy and PT United Tractors have also invested in non-coal mining assets over the past year, signifying a collective move towards diversification and sustainability in the face of the global shift towards cleaner energy sources. 
