Signing A 14 Percent Shares Divestment Agreement, Vale Indonesia (INCO) Wants To Get Legal Certainty Regarding IUPK

JAKARTA - PT Vale Indonesia Tbk (INCO) together with shareholders, namely Vale Canada Limited (VCL), PT Mineral Industri Indonesia (Persero) (MIND ID), and Sumitomo Metal Mining Co., Ltd (SMM) signed an Initial Agreement on divestment obligations in San Francisco, United States.

The signing of this agreement was witnessed by President Joko Widodo, Coordinating Minister for the Economy Airlangga Hartarto, Minister of Foreign Affairs (Menlu) Retno Marsudi, Minister of Trade (Mendag) Zulkifli Hasan, Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo, and other high-ranking state officials, reaffirming the importance of this achievement.

In this agreement, VCL and SMM will divest their share ownership in PT Vale by around 14 percent to MIND ID, so MIND ID will become the company's largest shareholder.

Detailed arrangements regarding the transaction mechanism will be finalized in the form of a definitive agreement and transactions are expected to be completed in 2024, depending on the usual closure conditions.

Meanwhile, CEO of PT Vale Febriany Eddy expressed his belief that with the signing of this agreement, his party had stepped forward to complete the divestment obligation, which is a prerequisite for obtaining an extension of the permit in the form of a Special Mining Business Permit (IUPK).

He considered that the signing of this important agreement underscores the company's firm commitment to compliance with sustainable business regulations and practices, thereby strengthening its important role in the Indonesian mining sector.

"The issuance of the IUPK will provide legal certainty for our operations, especially our large investment agenda," he added.