Midwest Limited has disclosed the signing of a Memorandum of Understanding (MoU) under Regulation 30 of SEBI (LODR) Regulations, 2015. The MoU was executed between Midwest Limited, Midwest Energy Limited, Non-Ferrous Materials Technology Development Centre (NFTDC), and PT Perusahaan Mineral Nasional (Persero) (PERMINAS), Indonesia's state-owned strategic minerals enterprise.
Parties Involved
- Midwest Limited (Indian listed company)
- Midwest Energy Limited (Indian company, part of promoter group)
- Non-Ferrous Materials Technology Development Centre (NFTDC) - autonomous R&D institution under Ministry of Mines, Government of India
- PT Perusahaan Mineral Nasional (Persero) (PERMINAS) - Indonesian state-owned strategic minerals enterprise
Purpose and Scope
The MoU establishes a framework to evaluate potential collaboration across the entire rare earth value chain in Indonesia, including:
- Upstream exploration and resource assessment
- Mining operations
- Processing, extraction, and refining
- Downstream manufacturing, particularly rare earth magnet production
Significant Terms and Contributions
Each party will contribute specific expertise:
- Midwest Limited: Expertise in exploration, mine planning, environmental studies, mining and mineral processing operations, and extraction/separation of rare earth elements
- Midwest Energy Limited: Technology and operational expertise in establishing rare earth magnet manufacturing plants
- NFTDC: Technology, technical expertise and services across the value chain
- PERMINAS: Will provide access to critical minerals and rare earth resources for joint development in Indonesia
Financial Considerations
The MoU does not specify any monetary consideration or financial commitment at this stage. Size of agreement is noted as "Not Applicable."
Related Party Aspects
Midwest Energy Limited is identified as part of the promoter group of Midwest Limited. The transaction is noted to fall within related party transactions and is stated to be done at "arm's length."
Shareholding Structure
Midwest Limited does not hold any shareholding in PERMINAS, and vice-versa.
Implementation Mechanism
The parties shall establish a joint working group to plan and monitor project implementation.
Strategic Significance
This marks Midwest Limited's first structured collaboration with a Southeast Asian state-owned strategic minerals enterprise and reinforces the company's strategy to build presence across the rare earth value chain.
Disclaimer
The document contains forward-looking statements subject to risks and uncertainties, with the company undertaking no obligation to update these statements.