Foreign media November 17 news, mining company Vale Base Metals (Vale Base Metals) said, Subsidiary Vale Canada Ltd and Japan's Sumitomo Metal Mining Co Ltd on Friday signed a preliminary agreement to sell their 14 per cent stake in Indonesia's nickel mining unit to the Indonesian state mining company.
Vale Base Metals said in a statement that Vale Canada and Juyou signed a principal agreement to sell the stake to PT Mineral Industri Indonesia, Indonesia's state-owned mining holding company.
The stake sale is one of the conditions for Indonesia to extend Vale Indonesia's mining license, which is currently set to expire in 2025. Foreign investors must transfer 51% of their shares to local buyers after a certain period of operation.
Vale is selling a 14 per cent stake in its Indonesian subsidiary
Upon completion of the transaction, MIND ID will become the largest shareholder of Vale Indonesia, increasing its stake from 20% to 34%. Vale Canada and Sumitomo will hold 33.9 per cent and 11.5 per cent respectively, down from 43.79 per cent and 15.03 per cent previously, according to the statement.
About 20% of Vale Indonesia's shares are publicly traded.
A "balanced" management structure will be put in place to maintain operational stability at the Indonesian branch, the statement said.
Deshni Naidu, chief executive of Vale Base Metals, said: "We look forward to working with our partners under the new shareholding structure to support the country's downstream ambitions and deliver strong economic value to our stakeholders and communities over the long term."
Indonesia, which has large nickel reserves, is keen to develop batteries and electric vehicles to take advantage of its abundant nickel reserves.
Vale Base Metals has pledged to invest about $10 billion in Indonesia over the next 10 years.
