The Indonesian government has granted permit extension for 20 years more for PT Vale Indonesia after share divestment two weeks ago.
Energy and Mineral Resource Minister Arifin Tasrif said the document for extension of the company special mining business permit was signed on Friday, March 22,2024.
“Yes, the permit extension is signed today,” Arifin said, while adding that Indonesia Mining Holding Company MIND ID currently has the biggest share in PT Vale Indonesia.
He said the extension and conversion of contract of works into special mining business permit was granted by the Ministry of Investment/Investment Coordinating Board based on the recommendation from the Energy and Mineral Resources Ministry.
PT Mineral Industri Indonesia (MIND ID), together with Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM) signed a share sale and purchase agreement for the divestment of PT Vale Indonesia (INCO) in Jakarta on Monday, February 26, 2024.
This agreement is a continuation of the Heads of Agreement signed on November 17, 2023. MIND ID together with VCL and SMM have agreed on the acquisition of PT Vale Indonesia shares by MIND ID, amounting to 14 percent of the total share ownership of the company.
The agreement signing is a crucial step for PT Vale Indonesia to fulfill its divestment obligations, as required by the Mineral and Coal Mining Law. This is a necessary prerequisite for extending PT Vale Indonesia’s Contract of Work through a Special Mining Business Permit (IUPK).
