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 17th, 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).
Once the divestment is completed, as stated after the signing of the Heads of Agreement, MIND ID and VCL will collaborate to support PT Vale Indonesia’s business activities. With two committed shareholders, who have a strong commitment to supporting the Company’s success, PT Vale Indonesia is expected to develop further strategies to generate added value for all shareholders and stakeholders. This partnership will also support Indonesia’s nickel industry downstream program, launched by the Government of Republic
of Indonesia.
The signing of this agreement was conducted by Hendi Prio Santoso, President Director of MIND ID, Deshnee Naidoo from VCL, and Yusuke Niwa from SMM.
The signing was directly witnessed by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan, Minister of State-Owned Enterprises Erick Thohir, Minister of Investment Bahlil Lahadalia, Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo, along with other high-ranking state officials.
“This is a historic moment for the Company. By signing the share sale and purchase agreement as part of our divestment plan, we are one step closer to obtaining the extension of the Contract of Work in the form of the Special Mining Business Permit (IUPK). This will give us legal certainty for future business activities and
development. We are also pleased to have the support of our main shareholders, MIND ID and VCL, in achieving our goals,” said PT Vale’s President Director and CEO, Febriany Eddy.
The parties involved are committed to completing the divestment transaction as per the brief agreement while still complying with all applicable laws and regulations. Any further updates on the divestment process or its completion will be provided in the future in accordance with applicable legal provisions. In parallel, the process of extending the Contract of Work in the form of an IUPK is currently underway and is expected to be completed soon.
“We are hopeful to obtain the IUPK soon, and our focus will be on carrying out all our development projects in Pomalaa, Bahodopi and Sorowako. The total investment for these projects will be US$9 billion (with partners), which marks an important milestone in our journey towards achieving our future business aspirations,” Febriany said.
