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

On June 28 2024, MIND ID has completed the acquisition of new shares as an exercise of all Pre-emptive Rights (HMETD) obtained by MIND ID in Capital Increase by Providing PT Vale's HMETD I and the purchase by MIND ID of some of the old shares belonging to VCL , SMM, and Vale Japan Limited at PT Vale through the negotiation market on the Indonesian Stock Exchange.

With this settlement, MIND ID officially becomes the largest shareholder in PT Vale with its share portion increasing from 20.0% to around 34.0%.

Meanwhile, VCL ownership reduced from 44.4% to around 33.9%, and SMM ownership reduced from 15.0% to around 11.5%.

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

PT Vale received the IUPK issuance on May 3 2024 as legal certainty for the company to continue operating in its concession area.

MIND ID Corporate Secretary, Heri Yusuf appreciates 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 Board, the Financial Services Authority, as well as Ministries and Institutions others in this divestment process.

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

"We will optimize the downstream process for PT Vale's mining products so that it can support domestic industry as well as export needs to support the downstream program," said Heri.

The acquisition of PT Vale shares is a strategic step for MIND ID so that Indonesia can take a stronger position in securing the supply of nickel-based downstream industry raw materials.

Moreover, nickel is a strategic and important mineral resource for the world, where nickel has become the main raw material for batteries for electric vehicles and electricity storage infrastructure. "This corporate action is momentum in strengthening Indonesia's position in the battery and electric vehicle industry in the future," concluded Heri.