Indonesia's MIND ID, Vale Canada, Sumitomo agree sale of 14% stake in Vale Indonesia (updated)

Sumitomo Metal Mining

26/02/2024 09:55

(Adds details from paragraph 2 onwards)
       JAKARTA, Feb 26 (Reuters) - Indonesia's state holding
company for mining, MIND ID, Vale Canada and Japan's Sumitomo
Metal Mining  5713.T  signed an agreement on Monday for the sale
of a 14% stake in nickel miner Vale Indonesia  INCO.JK .
    The divestment is a key condition for the extension of Vale
Indonesia's mining permit beyond 2025, with foreign investors
required to transfer 51% of their combined stakes to local
buyers after a certain period of operation.
    Vale Canada and Sumitomo in November signed an initial
agreement to sell the shares to MIND ID. 
    Upon completion, MIND ID will become the largest shareholder
of Vale Indonesia with its stake rising from 20% to 34%. 
    Vale Canada will hold 33.9% and Sumitomo 11.5%, down from
43.79% and 15.03%, respectively. 
    About 20% of Vale Indonesia's shares are publicly traded and
they lost 3% on Monday to close at 3,830 rupiah a piece.

 (Reporting by Fransiska Nangoy, Bernadette Christina Munthe;
Editing by Martin Petty)
 ((fransiska.nangoy@tr.com;))