Minister of Energy and Mineral Resources, Arifin Tasrif, urges the swift completion of the remaining divestment obligations of PT Vale Indonesia (INCO) as a prolonged divestment process by its foreign shareholders will make the Indonesian government to explore alternative options.
“We expect the deal to be executed promptly. If it cannot be done relatively soon, we will consider other options,” Arifin told a media conference in Jakarta on Monday, January 15, 2024.
While Arifin refrains from specifying potential alternatives, he emphasizes the need for expeditious resolution. INCO’s official statement anticipates the completion of the 14 percent equity release to the state-owned mining holding company, PT Mineral Industri Indonesia (MIND ID), in 2024, contingent on standard closing conditions. Following the completion, MIND ID will become the majority shareholder in Vale Indonesia with a 34 percent stake, while Vale Canada Limited and Sumitomo Metal Mining Co., Ltd will retain approximately 33.9 percent and 11.5 percent, respectively.
Vale Canada Limited presently controls 43.79 percent of Vale Indonesia’s shares, while Sumitomo Metal Mining Co., Ltd holds 15.03 percent. MIND ID owns 20 percent, and public ownership amounts to 20.38 percent.
Vale Base Metals Limited’s CEO and Vale’s Chairman, Deshnee Naidoo, affirms the significance of the divestment agreement, not only in meeting Indonesia’s divestment obligations but also in paving the way for mining permit renewals post-2025 and facilitating future investments in Indonesia.
Vale Indonesia currently oversees projects worth $8.6 billion or Rp133.3 trillion in Bahodopi, Soroako, and Pomalaa. Globally, Vale Base Metals Limited anticipates a production growth of over 300 kt/year, up from the current 175 kt/year. Naidoo emphasizes the commitment to advancing Indonesia’s nickel industry sustainably, drawing on Vale’s 55-year history of operations in the country.
