Vale Indonesia shareholders approve rights issue plan

Sumitomo Metal Mining

20/04/2024 03:36

JAKARTA, April 20 (Reuters) - Shareholders of nickel
miner PT Vale Indonesia approved a rights issue that will
facilitate the acquisition of a stake by Indonesia state mining
holding company MIND ID, the company said in a statement late on
Friday.
    Vale Canada and Japan's Sumitomo Metal Mining had agreed to
sell 14% of the Indonesian unit to MIND ID to fulfil a
divestment requirement to secure new mining permit.
    The statement said Vale Indonesia will issue 603 million new
shares under a rights issuance. Vale Canada, Sumitomo and Vale
Japan will relinquish their entitlement of the rights issue to
MIND ID. 
    On top of that, Vale Canada, Sumitomo and Vale Japan Ltd
will also sell part of their shares to MIND ID.
    After the transactions, MIND ID will become the largest
shareholders with a 34% stake in the nickel company, from 20%
now, which MIND ID and Vale Canada will become "joint
controller" of Vale Indonesia.
    The divestment is required by Indonesia to issue a new
mining permit for Vale Indonesia. Its current contract will
expire in 2025.

 (Reporting by Bernadette Christina, Writing by Fransiska Nangoy
Editing by Shri Navaratnam)
 ((Bernadette.Christina@Thomsonreuters.com))