https://www.miningweekly.com
Mining|Environmental
Mining|Environmental
mining|environmental

MIND ID to acquire 14% stake in Vale Indonesia from foreign investors

26th February 2024

By: Reuters

  

Font size: - +

JAKARTA - Indonesia's mining industry holding company, MIND ID, agreed on Monday to acquire a 14% stake in Vale Indonesia from Vale Canada and Japan's Sumitomo Metal Mining, to become the top shareholder at one of the country's largest nickel miners.

The divestment is a key condition for the extension of Vale Indonesia's mining permit beyond 2025, with foreign investors required to transfer 51% of their combined stakes to local buyers after a certain period of operation.

Upon completion, MIND ID will be the largest shareholder in Vale Indonesia, with its stake rising to 34% from 20%.

Vale Canada will hold 33.9% and Sumitomo 11.5%, down from 43.79% and 15.03%, respectively. About 20% of the shares are publicly traded.

The shares were valued at 3,050 rupiah ($0.1952) each, senior minister Luhut Pandjaitan told reporters. They were traded at 3 830 rupiah by Monday's closing on the local stock exchange, down 3.1% from the previous session.

Vale Canada would receive around $160 million in cash upon completion, the company said in a separate statement.

The government will work on issuing the new mining permit for Vale within ten days after the signing on Monday, Dadan Kusdiana, senior mining ministry official said, offering certainty to the company's future operation.

Vale Indonesia will get ten years to operate under the new permit after 2025, which can be extended.

Asked about the make up of the board of directors, Deshnee Naidoo, chief executive of Vale Base Metals, the parent of Vale Canada, said all parties are in further discussion, but have agreed on the chief executive and chief operating officers.

"For now, the CEO will come from MIND ID and the COO from us," Naidoo said.

Vale is committed to maintaining its environmental, social and governmental standards for its operation in Indonesia, she added.

Edited by Reuters

Comments

Showroom

Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 
Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.176 0.214s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: