China Hanking Holdings Ltd. agreed to sell its 70% stake in the investment holding company, Hanking (Indonesia) Mining Ltd., to Tuochuan Capital Ltd. for 350.0 million Chinese yuan.

Proceeds for the sale of the nickel assets will be used to advance the Mount Bundy gold project of its recently acquired Australian unit, Primary Gold Ltd., to develop other mineral projects and for working capital.

The company noted Hanking (Indonesia) recorded a loss in the past three years, including 26.9 million yuan in 2017, as its nickel project was not returning a profit.

"Given the constant changes in the laws relating to export of mineral products issued by the Indonesia government, the nickel project of the company was in a loss-making position as a result of the ban on export sales," the company wrote. China Hanking said July 5 it expects to record a premium of about 131.4 million yuan on the sale.

The company resumed mining operations at its laterite nickel asset in Indonesia in August 2017 after production had been suspended since 2014 due to the restrictions on mineral exports. Evergreen Mining Ltd. holds the remaining 30% stake in Hanking (Indonesia).

As of July 5, US$1 was equivalent to 6.64 Chinese yuan.