Vale Base Metals Limited (VBM) announced its subsidiary, Vale Canada Limited (VCL), signed an agreement with PT Mineral Industri Indonesia (MIND ID) and Sumitomo Metal Mining Co., Ltd. (SMM) to divest approximately 14% equity interest in PT Vale Indonesia Tbk (PT Vale) to MIND ID. This transaction positions MIND ID as PT Vale's largest shareholder, holding about 34% of the issued shares, while VCL and SMM will retain approximately 33.9% and 11.5% stakes, respectively. The agreement aims to ensure the stability and growth of PT Vale's operations in Indonesia, with a focus on sustainably advancing the country's nickel industry.

Deshnee Naidoo, VBM CEO and PT Vale President Commissioner, highlighted the commitment to enhancing Indonesia's nickel sector and supporting the country's downstreaming ambitions. The agreement, valued at US$8.6 billion, promises to deliver significant economic benefits to stakeholders and communities, aligning with Indonesia's divestment requirements and facilitating PT Vale's license renewal beyond 2025. This renewal is crucial for PT Vale's continued investments and growth projects in Bahodopi, Sorowako, and Pomalaa, potentially increasing VBM's global nickel production.

The transaction, expected to close in 2024, was announced during the Asia-Pacific Economic Cooperation Leaders’ Meeting 2023, in the presence of Indonesian President Joko Widodo and other officials, signifying its strategic importance to Indonesia's mining sector and broader economic interests.