MIND ID is officially the major shareholder of PT Vale Indonesia Tbk with the finalization of the transaction

Jakarta, 1 July 2024 – MIND ID or PT Mineral Industri Indonesia (Persero), the Holding State-Owned Enterprise for the Mining Industry, announces the completion of the purchase transaction of about 14% of PT Vale Indonesia (PT Vale) divestment of shares from Vale Canada Limited (VCL) and Sumitomo Metal Mining Co. Ltd. (SMM).

On June 28, 2024, MIND ID also completed the takeover of new shares as implementation of all Rights Issue (Hak Memesan Efek terlebih Dahulu - HMETD) obtained by MIND ID in the Capital Increase by providing HMETD I PT Vale and purchase by MIND ID of a portion of old shares owned by VCL, SMM, and Vale Japan Limited at PT Value, through the negotiation market at the Indonesia Stock Exchange.

Through the settlement of this transaction, MIND ID is officially the biggest shareholder at PT Vale with ownership of shares increasing from 20.0% to about 34.0% while the ownership of VCL dropped from 44.4% to about 33.9%, and ownership of SMM from 15.0% to about 11.5%.

The share divestment is part of the obligation to extend the operational license for 10 years as obtained by PT Value through the issuance of the Special Mining License (IUPK) up to 28 December 2035.

PT Vale received the IUPK on 3 May 2024 as legal certainty for the company to remain in operations in its concession territory.

MIND ID Corporate Secretary, Heri Yusuf, appreciates the support from the Coordinating Ministry of Maritime and Investment, Ministry of State-Owned Enterprises, Ministry of Energy and Mineral Resources, Ministry of Finance, Ministry of Investment/Capital Investment Coordinating Board, Financial Service Authority, and other Ministries and Institutions in the divestment process.

Heri stressed that MIND ID will continue its collaboration with VCL and other PT Vale stakeholders in developing PT Vale.

“We shall optimize the downstreaming process of PT Vale’s mining products to support the domestic industry in the country and export needs in reinforcing the downstreaming program,” said Heri.

The acquisition of PT Vale shares is the strategic step of MIND ID to ensure Indonesia takes a stronger position to safeguard the nickel-based downstream industry’s raw material supply.

More so, as the nickel commodity is one of the strategic and important mineral resources for the world nickel is the main raw material for batteries of electric vehicles and electric storage infrastructure.

“This corporate action constitutes a momentum in strengthening the future of Indonesia’s position in the battery and electric vehicle industry,” Heri ended.