Tuesday, July 16, 2024

MIND ID officially the largest PT Vale Indonesia’s shareholder

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Gusty da Costa

Journalist

Editor

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JAKARTA − State-owned Mining Industry Holding Company, PT Mineral Industri Indonesia (“MIND ID”), has completed the purchase of approximately 14 percent of
the divested shares of PT Vale Indonesia from Vale Canada Limited (“VCL”) and Sumitomo Metal Mining Co., Ltd. (“SMM”).

Through the completed purchase accomplished on June 28, 2024, MIND ID officially becomes the largest shareholder in PT Vale with a share portion that increases from 20 percent to around 34 percent. Meanwhile, VCL’s ownership decreased from 44.4 percent to approximately 33.9 percent, and SMM’s ownership decreased from 15 percent to approximately 11.5 percent.

This share divestment is part of the obligation to extend the operating permit for 10 years obtained by PT Vale through the issuance of a Special Mining Business Permit (IUPK) until December 28, 2035.

PT Vale secured the IUPK on May 3, 2024 as legal umbrella for the company to continue operating in its concession area.

MIND ID Corporate Secretary, Heri Yusuf, appreciated the support from the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of State-Owned Enterprises, the Ministry of Energy and Mineral Resources, the Ministry of Finance, the Ministry of Investment/Investment Coordinating Board, the Financial Services Authority (OJK), as well as other ministries and institutions in the divestment process.

Heri emphasized that MIND ID will continue to collaborate with VCL and other stakeholders in developing PT Vale.

“We will optimize the downstream process of PT Vale’s mining products to support domestic industry as well as export needs in support of the downstream program,” Heri said in a statement on July 2, 2024.

The shares acquisition of PT Vale is a strategic step taken by MIND ID so that Indonesia can take a stronger position to secure the supply of raw materials for the nickel-based downstream industry.

Moreover, nickel commodity is one of the strategic and important mineral resources for the world where nickel has become the main raw material for batteries for electric vehicles and electricity storage infrastructure.

“This corporate action is a momentum in strengthening Indonesia’s position in the battery and electric vehicle industry going forward,” Heri said.

Gusty da Costa

Journalist

 

Editor

 

Interview

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