Transaction Process Completed, MIND ID Officially Narrows 34 Percent Of Vale Indonesia's Shares

JAKARTA - BUMN Mining Industry Holding, PT Mineral Industri Indonesia (Persero) (MIND ID), announced the completion of the purchase transaction of around 14 percent of the divestment shares of PT Vale Indonesia Tbk (INCO) from Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM).

For information, on June 28, 2024, MIND ID has completed taking over new shares as an implementation of all Pre-emptive Rights (HMETD) obtained by MIND ID in Capital Increase by Providing Rights I PT Vale and purchases by MIND ID over some of the old shares owned by VCL, SMM, and Vale Japan Limited in PT Vale through the negotiation market on the Indonesia Stock Exchange.

Through the settlement of this transaction, MIND ID officially became the largest shareholder in PT Vale with a share portion increasing from 20.0 percent to around 34.0 percent. Meanwhile, VCL's ownership decreased from 44.4 percent to around 33.9 percent, and SMM ownership decreased from 15.0 percent to around 11.5 percent.

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

Thus PT Vale received the issuance of the IUPK on May 3, 2024 as legal certainty for companies to continue operating in the 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 Agency, the Financial Services Authority, and other Ministries and Institutions in this divestment process.

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

"We will optimize the downstream process for the mining products of PT Vale in order to support the domestic industry and export needs in supporting the downstream program," Heri said in a statement to the media quoted on Tuesday, July 2.

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

Moreover, nickel commodities are 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 industry and electric vehicles going forward," concluded Heri.