Vale divestment in Indonesian nickel unit expected to finish in July (updated)

Sumitomo Metal Mining

03/04/2024 09:53

(Adds details)
       JAKARTA, April 3 (Reuters) - Indonesia's mining minister
on Tuesday said divestment of Vale Canada Ltd  VACA.UL  and
Sumitomo Metal Mining  5713.T  Co. Ltd's shares in their nickel
miner unit Vale Indonesia  INCO.JK  is expected to conclude in
July.
    The transaction is required by the government to extend Vale
Indonesia's operating permit beyond 2025.
    Minister Arifin Tasrif told a parliament hearing that after
the transaction is concluded, Vale Indonesia will be given a new
permit that will be valid until at least 2035.
    Vale Canada and Sumitomo agreed to divest a 14% stake in
nickel unit to Indonesia's mining industry holding company, MIND
ID, taking MIND ID's ownership to 34%.
    Vale Indonesia's spokesperson on Monday said the company
hoped the new permits could be issued soon as it would be
crucial for it to move forward with its investment plans.
    

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