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MIND ID to acquire 14 percent of Vale Indonesia
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A worker is seen on Aug. 1, 2019, while nickel ore is produced at a smelter in Sorowako, South Sulawesi. (Shutterstock/Kaisarmuda)
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tate-owned mining holding company MIND ID is expected to acquire a 14 percent stake in Indonesia’s largest nickel miner, Vale Indonesia, by year-end in a move to strengthen Indonesia’s hold on domestic mineral resources.
Energy and Mineral Resources Minister Arifin Tasrif told reporters on Friday that the deal, which involves business-to-business (B2B) negotiations regarding the divestiture requirement and operational issues, was entering its final stage. He said he expected the agreement to be finalized this year.
The stake to be acquired is up from the previously planned 11 percent. If signed, the agreement brings an end to an almost year-long negotiation between the parties involved.
Read also: SOEs Minister maintains nickel miner Vale must relinquish more stake to RI
“In principle, Vale [Canada] has agreed to let go of its shares,” Arifin said in Jakarta, without elaborating on Vale Indonesia’s divestment scheme or whether MIND ID would assume control of the nickel miner’s assets and finances.
“This joint management scheme must consider each company’s plans and capabilities. Future plans will be agreed on by the management through B2B negotiations.”
Currently, Vale Canada Ltd, which is a subsidiary of Brazilian mining company Vale, and Japan-based Sumitomo Metal Mining Co. Ltd. own 43.79 and 15.03 percent of Vale Indonesia, respectively, while MIND ID owns 20 percent, Vale Japan Ltd 0.54 percent and the investing public owns the remaining 20.64 percent.
