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MIND ID, Vale agree on price for planned divestment
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An undated photo shows operations at a nickel mine of PT Vale Indonesia in Sorowako, South Sulawesi. (JP/Ruslan Sangadji)
M
ining giant Vale has agreed in principle on a price for the portion of shares PT Vale Indonesia will sell to state-owned mining holding company MIND ID, according to the Energy and Mineral Resources Ministry.
Vale Canada, a unit of Vale Base Metals, and Japan’s Sumitomo Metal Mining signed an initial agreement to sell a 14 percent stake in their Indonesian nickel mining unit to MIND ID last November.
Energy and Mineral Resources Minister Arifin Tasrif said MIND ID had agreed to acquire the stake in Vale Indonesia for approximately Rp 3,000 (0.19 US cents) per share, as reported by Bisnis on Friday.
The minister explained that the process was slated to be completed in the next few days.
He added that the agreed-on price was below the market price but did not elaborate on the discount. Vale Indonesia did not immediately respond to a request for comment.
“[Vale and MIND ID] agreed on the price, in accordance with the proportion of shares released,” Arifin told reporters, stating that the government would extend Vale Indonesia’s working contract, which is currently slated to end in December 2025.
The minister approved Vale Indonesia's investment proposal for the entire area development plan on April 10 last year. The document contains plans to change Vale Indonesia's investment license for the period after the contract extension to a special mining business permit (IUPK).
