TORONTO, Feb. 26, 2024 /PRNewswire/ -- Vale Base Metals
("VBM") informs that Vale Canada Limited ("VCL") signed a
Definitive Agreement ("Agreement") with PT Mineral Industri
Indonesia ("MIND ID") and Sumitomo Metal Mining Co., Ltd. ("SMM")
regarding the divestment obligation of PT Vale Indonesia Tbk ("PT
Vale"). Under the Agreement, VCL and SMM will divest approximately
14 per cent pro-rata combined equity interest in PT Vale to MIND
ID.
Upon completion of the transaction, MIND ID will hold
approximately 34 per cent of PT Vale's issued shares, making it the
largest shareholder in the company. VCL and SMM will hold 33.9 per
cent and 11.5 per cent, respectively. Approximately 20.6 per cent
will continue to be held by the public on the Indonesia Stock
Exchange.
Transaction background
In October 2014, PT Vale signed an
amendment to its 1996 Contract of Work with the Government of
the Republic of Indonesia, which
is set to expire in December 2025.
Under the prevailing laws and regulations, PT Vale has to achieve
51 per cent Indonesian ownership by December
2025 as part of the extension of its long-term operating
license.
VBM Chair Mark Cutifani said,
"This Agreement signals the commitment made by Vale Base Metals to
PT Vale, the Indonesian people, and to our stakeholders to unlock
value from our assets. Our focus will now turn to realizing the
future potential of PT Vale's growth investments across Sulawesi.
Together with our strong international relationships with leading
industry partners, automakers, and OEMs, Vale Base Metals is
uniquely positioned to meet the growing demand for critical
minerals for the global energy transition."
VBM Chief Executive Officer Deshnee Naidoo said, "We look
forward to working closely with our partners under the new balanced
shareholding structure. Vale Base Metals' growth projects will
deliver strong value to the Indonesian government, the local
communities, and our stakeholders. Vale Base Metals remains
steadfast in our commitment to growing regional opportunities for
the responsible production of low-carbon nickel, copper, and other
metals critical for the energy transition."
The transaction
For its stake, VCL will receive approximately US$160 million in cash upon closing of the
transaction, which is expected to happen before the end of 2024,
after the satisfaction of customary closing conditions.
Once completed, the transaction fulfils Indonesia's divestment obligations and
satisfies a key condition for PT Vale to extend the life of its
mining license through the issuance of a Special Mining Business
License (IUPK). Following transaction closure, VCL will maintain
significant economic exposure to PT Vale as a non-operated joint
venture and will continue to provide strong governance through the
Board of Commissioners.
CONTACT: Media Relations Office - Vale,
media.valebasemetals@vale.com
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