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MIND ID to become largest single shareholder in Vale Indonesia for $300m
The government had made the deal a perquisite for extending Vale’s mining permits in the country.
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Vale Base Metals CEO Deshnee Naidoo (left) and MIND ID president director Hendi Prio Santoso (center) attend the signing of an agreement for the acquisition of shares in PT Vale Indonesia. (JP/Divya Karyza)
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tate-owned mining holding company MIND ID will be the largest single shareholder in nickel miner PT Vale Indonesia, following an agreement signed on Monday, as the government moves to tighten its grip on domestic mineral resources.
The approximately US$300 million agreement will raise MIND ID’s stake in Vale Indonesia from 20 percent to 34 percent. Mind ID is purchasing the shares from Vale Canada, a unit of Vale Base Metals, and Japan’s Sumitomo Metal Mining.
Following the purchase, Vale Canada will hold 33.9 percent of the venture and Sumitomo 11.5 percent, down from 43.79 percent and 15.03 percent, respectively. The remainder of the shares are publicly traded.
The government had made the deal a perquisite for extending Vale’s mining permits in the country.
Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan said on Monday that he had asked the relevant ministries to quickly complete all the permits that had not been issued to Vale.
“Especially the IUPK [Special Mining Business License]. [It needs] to be issued immediately, within this week,” he told reporters in Jakarta.
MIND ID will conclude the transaction in June. The SOE will also hold the right to appoint the CEO and human resources director of Vale Indonesia.
