Indonesia, Vale agree price for divestment plan, minister says (updated)

Sumitomo Metal Mining

16/02/2024 06:44

(Adds details from paragraph 3 onwards)
    By Fransiska Nangoy
       JAKARTA, Feb 16 (Reuters) - Indonesia and Vale Base
Metals have concluded negotiations and agreed in principle to a
price for the portion of shares the miner will sell in its
Indonesian unit  INCO.JK , the mining minister said on Friday.
    Vale Canada, a unit of Vale Base Metals, and Japan's
Sumitomo Metal Mining  5713.T  signed an initial agreement to
sell a 14% stake in their Indonesian nickel mining unit to
Indonesia's state mining holding company, MIND ID last November.
    Minister Arifin Tasrif did not mention the price, but he
said it would be below the current market price. Vale was not
immediately available to comment.
    Share divestment is a condition required by authorities to
extend Vale Indonesia's mining permit, which will otherwise end
in 2025. Foreign investors are required to divest 51% of their
stakes to local buyers after a certain period of operation.
    Upon completion, MIND ID will become the largest shareholder
of Vale Indonesia with its stake rising to 34% from 20%. Vale
Canada will hold 33.9%, down from 43.79%, and Sumitomo 11.5%,
down from 15.03%, according to a statement in November.
    About 20% of Vale Indonesia's shares are publicly traded.
    

 (Reporting by Fransiska Nangoy; Writing by Gayatri Suroyo;
Editing by Martin Petty)
 ((gayatri.suroyo@thomsonreuters.com; +622129927609;))