JAKARTA − State-owned mining holding company PT Mineral Industri Indonesia (“MIND ID”) has completed the purchase of approximately 14 percent of the Indonesian mining sector’s
the transferred shares of PT Vale Indonesia to Vale Canada Limited (“VCL”) and Sumitomo Metal Mining Co., Ltd. (“SMM”).
With the acquisition completed on June 28, 2024, MIND ID officially becomes the largest shareholder of PT Vale with a stake increasing from 20% to approximately 34%. At the same time, VCL’s stake decreased from 44.4% to approximately 33.9%, and SMM’s stake decreased from 15% to approximately 11.5%.
This transfer of shares is part of the obligation to extend by 10 years the operating permit obtained by PT Vale through the issuance of a special mining permit (IUPK) until December 28, 2035.
PT Vale obtained the IUPK on May 3, 2024 as a legal umbrella for the company to continue operating in its concession area.
MIND ID Secretary General Heri Yusuf appreciated the support of the Coordinating Ministry for Maritime Affairs and Investment, Ministry of Public Enterprises, Ministry of Energy and Mineral Resources, Ministry of Finance, Ministry of Investment/Investment Coordinating Board, Financial Services Authority (OJK), as well as other ministries and institutions in the divestment process.
Heri stressed that MIND ID will continue to collaborate with VCL and other stakeholders in the development of PT Vale.
“We will optimize the downstream process of PT Vale’s mining products to support the domestic industry as well as export needs in support of the downstream program,” Heri said in a statement on July 2, 2024.
The acquisition of PT Vale shares is a strategic step taken by MIND ID so that Indonesia can take a stronger position to secure the supply of raw materials for the downstream nickel-based industry.
Moreover, nickel is one of the strategic and important mineral resources for the world, where nickel has become the main raw material for electric vehicle batteries and electricity storage infrastructure.
“This corporate action is a momentum to strengthen Indonesia’s position in the battery and electric vehicle sector in the future,” Heri said.
