JAKARTA - Indonesia's mining minister on Tuesday said divestment of Vale Canada and Sumitomo Metal Mining's shares in their nickel miner unit Vale Indonesia is expected to conclude in July.
The transaction is required by the government to extend Vale Indonesia's operating permit beyond 2025.
Minister Arifin Tasrif told a parliament hearing that after the transaction is concluded, Vale Indonesia will be given a new permit that will be valid until at least 2035.
Vale Canada and Sumitomo agreed to divest a 14% stake in nickel unit to Indonesia's mining industry holding company, MIND ID, taking MIND ID's ownership to 34%.
Vale Indonesia's spokesperson on Monday said the company hoped the new permits could be issued soon as it would be crucial for it to move forward with its investment plans.