MIND ID Concludes Transaction of Vale Indonesia Share Acquisition

Jakarta, 07 October 2020 – Mining Industry Indonesia (MIND ID) together with the majority shareholders of PT Vale Indonesia Tbk (PTVI), namely Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM), have concluded the transaction of 20% PTVI divestment shares purchase on Wednesday, 7 October 2020.

 VCL has released 14.9% of its shares and SMM 5.1%, at Rp 2,780 per share or a total value of Rp 5.52 trillion. With the conclusion of the transaction, the share ownership in PTVI is now VCL 44.3%, MIND ID 20%, SMM 15% and the public 20.7%.

 The conclusion of the transaction signifies the start of a long-term strategic cooperation between MIND ID and PTVI.  The Government has appointed PT Indonesia Asahan Aluminium (Persero), now known as MIND ID, as the representative of the Government in this share divestment. PTVI’s 20% share divestment is an obligation stated in the amendment to the 2014 Contract of Work between PTVI and the Government of Indonesia.

 MIND ID’s participation in world class mining companies, such as PTVI (Brazil/Canada/Japan) and PT Freeport Indonesia (USA), is evidence of Indonesia’s success in maintaining and attracting investments from global companies to the national mining industry.

 “The cooperation between MIND ID and PTVI will become a mutually beneficial and complementary synergy to advance the mining industry.  This is also evidence of the trust given by world class companies towards MIND ID,” said MIND ID Group CEO Orias Petrus Moedak.

 Participation of MIND ID in PTVI is a strategic move to enable Indonesia to harness a strong position to safeguard the supply of its nickel-based raw materials for the downstream industry. The commodity is one of the strategic and important global resources as nickel has become the main raw material for electrical vehicle batteries and also for power storage infrastructure.

 In the implementation of this transaction, MIND ID is assisted by several key stakeholders and consultants, among which are BNP Paribas, Shearman & Sterling dan Melli Darsa & Co., EY Indonesia, AMC Consultants dan Ruky, Safrudin & Rekan.