Lygend Resource announced that on January 13, 2026, BBS and BMS entered into the BJL Shareholders Agreement to establish the joint venture company BJL. The establishment of the BJL joint venture is aimed at adapting to the company's business development needs and applying for necessary tax incentives in Indonesia. According to the BJL Shareholders Agreement, the initial investment amount for BJL is approximately USD 505 million, and its authorized share capital is IDR 1,329.888 billion. The capital contribution will be made by the BJL contracting parties in proportion to their respective shareholdings in BJL, with 99.999925% to be held by BBS and 0.000075% by BMS.
The contracting parties of BJL intend to establish BJL to align with the company's business development requirements and to qualify for Indonesian tax incentives. This move is expected to reduce the tax burden costs associated with the hydrometallurgical slag treatment business in the future, serving as an optimization of the specific implementation plan. The hydrometallurgical slag treatment plant includes an HPAL smelting slag treatment facility with an annual processing capacity of 1.34 million tonnes of HPAL smelting slag, along with a slag storage yard and other supporting facilities. This project will enable the group to reduce waste and utilize resources efficiently in compliance with environmental protection principles. Furthermore, given Indonesia's increasing infrastructure budget and the corresponding expected rise in demand for HPAL smelting slag treatment, the hydrometallurgical slag treatment business is anticipated 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.
Written by Cora Ji, jiruyan@mysteel.com
