KUALA LUMPUR (July 12): Niche Capital Emas Holdings Bhd is exploring a potential partnership with an Indonesian nickel mining company to venture into nickel mining.

The integrated jeweller said the company entered into a three-month memorandum of understanding (MOU) with PT Advance Nickel Energy (PT ANE) to establish a basis of cooperation and collaboration for the purpose of undertaking a proposed nickel venture in Indonesia.

According to Niche Capital, PT ANE has entered into business arrangements with companies with nickel mining licences in Sulawesi, Indonesia.

Pursuant to the salient terms of the MOU, Niche Capital seeks to invest in and enter the Indonesian mining industry by establishing a relationship of cooperation on various potential arrangements.

This may include the company acquiring PT ANE shares, establishing a joint venture and cooperation for contractor works, it said.

“The proposed collaboration is part of the company’s strategic plan to expand its mining operation beyond Malaysia and to diversify into other minerals besides gold.

“The MOU allows the parties to negotiate exclusively so as to ensure that Niche Capital has the right partner for its entry into the Indonesian nickel venture,” it said.

For the third quarter ended March 31, 2023 (3QFY2023), Niche Capital was in the red with a narrower net loss of RM789,000 versus RM1.25 million a year earlier, despite revenue falling 65.25% to RM2.65 million from RM7.62 million previously.