Vale Base Metals Boss Visits Erick Thohir, Discusses Nickel Industry Development

SOE Minister Erick Thohir received a visit from Chief Sustainability and Corporate Affairs Officers Vale Base Metals and CEO Vale Indonesia (Doc. KBUMN)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir received a visit from Chief Sustainability and Corporate Affairs Officers Vale Base Metals and CEO Vale Indonesia.

The meeting was revealed through a photo uploaded by Erick via the official Instagram account @erickthohir, quoted Friday, July 12.

Meet Chief Sustainability and Corporate Affairs Officers, Vale Base Metals, Mrs. Emily Olson and CEO Vale Indoneisa, Mrs. Febriany Eddy, and Director, Mr. Bernardus irmanto," wrote Erick.

Erick explained that the meeting discussed the development of the nickel industry. He said, PT Vale Indonesia Tbk is part of the electric vehicle ecosystem.

We discuss the strategy of developing the domestic nickel industry as part of the downstream program. PT Vale Indonesia as part of the electric vehicle ecosystem, has also collaborated with world giant car manufacturers such as Ford and European automakers," he explained.

For your information, the Mining Industry Holding BUMN, PT Mineral Industri Indonesia (Persero) (MIND ID) itself has completed 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).

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 at 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.