TORONTO, November 18, 2023 /PRNewswire/ — Vale Base Metals Limited (“VBM”) announced today that its wholly-owned subsidiary Vale Canada Limited (“VCL”) has signed an agreement in principle (“Agreement”) with PT Mineral Industri Indonesia ( “MIND ID”). and Sumitomo Metal Mining Co., Ltd. (“SMM”) regarding the sale of an approximately 14% stake in PT Vale Indonesia Tbk (“PT VaIe”) from VCL and SMM to MIND ID.
Once finalized, state-owned mining company MIND ID will become the largest shareholder of PT Vale, holding approximately 34% of the issued shares, with VCL and SMM holding approximately 33.9% and approximately 11.5%, respectively. A balanced governance structure will support both the stability and growth of PT Vale’s continued operations in Indonesia.
Deshnee Naidoo, Chief Executive Officer of VBM and Chairman of PT Vale, said: “This agreement reinforces our commitment to sustainably advancing Indonesia nickel industry, drawing on our 55 years of experience in the country. As a leading supplier of responsibly produced low-carbon nickel and other metals essential to the energy transition, we look forward to working within the new shareholding structure with our partners to support the ambitions of the countries in terms of downstream and bring strong economic value to our stakeholders and our communities in the long term.”
The agreement was signed on the sidelines of the 2023 Asia-Pacific Economic Cooperation Leaders’ Meeting, during a ceremony attended by the Indonesian president. Joko WidodoDeputy Minister of Public Enterprises Kartika Wirjoatmodjo and other government officials.
The agreement is an important step towards a mutually beneficial outcome that meets Indonesia’s divestment obligations and paves the way for the renewal of PT Vale’s mining license beyond 2025, which will allow PT Vale’s investments and new growth projects in Bahodopi, Sorowako and Pomalaa. Together, this represents 8.6 billion US dollars in investment for Indonesia. Indonesia and PT Vale will remain important drivers of growth in VBM’s global nickel production, which has the potential to increase to over 300 kt/yr from around 175 kt/yr currently.
The transaction is expected to close in 2024, subject to customary closing conditions.
Vale Base Metals, the holding entity for Vale’s energy transition metals business, is one of the world’s largest producers of high-quality nickel and a major producer of responsibly sourced copper and cobalt. With a corporate presence in Toronto, Canadaand operations in Newfoundland & Labrador, Ontario, Manitoba, Indonesia, Brazilthe United Kingdom and Japanthe company provides essential building blocks for a cleaner, greener future.
Media Relations Office – Vale, media.valebasemetals@vale.com
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SOURCE Vale Base Metals
