Industry Updates

Hedonova Achieves Remarkable Profit, Yet Exits Indonesian Nickel Investment Due to ESG Concerns

Published: July 20, 2023

Hedonova, a prominent alternative investment firm, is delighted to announce the successful closure of its nickel co-investment, which has generated an outstanding profit of 11.21% in the Indonesian Nickel market. This achievement showcases Hedonovas strategic investment prowess and commitment to sustainable industries.

We are excited about this profitable arbitrage opportunity,” said Suman Banerjee, Chief Investment Officer at Hedonova. “By partnering with Glencore, we ensured the utilisation of this valuable high-grade Nickel asset in the growing electric vehicle market.”

Hedonova allocated $6.76 million from its investment fund, while clients contributed $33 million. The inventory purchase was completed on 10 June. Hedonovas decision to exit the Indonesian nickel co-investment was driven by concerns over Indonesias loose labour and environmental standards, which contradict the countrys aspirations to become a hub for clean technologies. The acid-leaching process used in nickel mining has resulted in highly acidic waste being dumped into oceans or pumped underground, contaminating drinking water. Additionally, local communities have suffered from the destruction of paddy farms, acid rain, and respiratory problems due to the thick smoke and dust generated by mining activities. These environmental, social, and governance (ESG) issues played a pivotal role in Hedonovas departure from the investment.

In addition to financial gains, Hedonova remains committed to environmental sustainability. The investment in high-grade Nickel inventory for electric vehicle batteries aligns with the firms dedication to supporting sustainable industries and technologies. Hedonova continues to explore alternative investment opportunities that offer attractive growth potential while managing risks effectively. The firms proven track record and client-focused approach have positioned it as a trusted partner in the investment landscape.

About Hedonova

Hedonova is an alternative investment firm specialising in identifying and capitalizing on unique investment opportunities across various sectors. With a focus on delivering exceptional returns, Hedonova provides clients with access to alternative investment options that offer attractive growth potential. The firms experienced professionals utilize in-depth market knowledge and rigorous analysis to ensure strategic investments are aligned with clients financial goals.

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