JAKARTA (Reuters) – Mining Industry Indonesia, the state miner formerly known as PT Inalum, said on Monday it has signed an initial agreement to buy a 20% stake in nickel miner PT Vale Indonesia (INCO.JK) for an undisclosed sum.
The planned sale was flagged by the Indonesian government last week as Vale Indonesia seeks to comply with rules that require foreign controlled miners to reduce their ownership to 49% or below within 10 years of starting operations.
Vale Indonesia is currently around 59% owned by Brazil’s Vale SA (VALE3.SA) and around 20% by Japan’s Sumitomo Metal Mining Co Ltd.
“The (shareholder) structure is still being discussed, but foreign participation will be reduced to 60% or less,” Rendi Witular, a spokesman for Mining Industry Indonesia, told Reuters by text. Asked about the sale price, Witular said it would be a “fair market value.”
Vale Indonesia’s share price rose as much as 2.4% after the announcement, to touch 3,920 rupiah, its highest in a month, giving the company a market capitalization of 38 trillion rupiah ($2.69 billion), according to Eikon Refinitiv data.
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