JAKARTA. Vale Canada Limited (VCL) and Sumitomo Metal Mining Co. Ltd. have signed on a divestment agreement of approximately 14% of PT Vale Indonesia Tbk (INCO) to MIND ID.

This divestment agreement took place in the United States on November 17, 2023. The signing was witnessed directly by Joko Widodo and several of his ministers.

After this divestment, MIND ID, as a state-owned mining holding company, will become the biggest shareholder of INCO. For the record, prior to this, MIND ID had possessed 20% of INCO’s shares.

The detailed regulation regarding transaction mechanism will be finalised in a definitive agreement. The transaction is targeted for completion in 2024.

“With this agreement signing, PT Vale has progressed so far to fulfil divestment obligations, which serve as terms and conditions to obtain a permit in the form of Special Mining Business License,” Febriany Eddy, CEO of INCO, mentioned in the official disclosure.

Eddy further said that this agreement signing becomes a proof of INCO’s commitment regarding its compliance with regulation and sustainable business practices. “Therefore, it reinforces the importance of its role in mining sector of Indonesia,” she concluded. (KR/ZH)