JAKARTA, Nov 10 (Reuters) – Mining company Vale will sell a 14% stake in its Indonesian nickel miner Vale Indonesia (INCO.JK) to bring the holding by overseas firms below the maximum limit, Indonesia’s mining minister said on Friday.
Share divestment is a condition Indonesia requires to extend the operation permit for Vale Indonesia. Vale’s current contract is due to end in 2025. Under Indonesian rules, foreign investors are required to divest 51% of their stake to local buyers after a certain period of operation.
Minister Arifin Tasrif told reporters there will be a “special pricing” for the divestment, though he did not provide details of the pricing, adding the government is aiming for the deal to be secured this year.
Vale Indonesia’s shares were traded at 4,690 rupiah ($0.2988) a piece on Friday. Arifin also said that following the permit extension, Vale will have three years to show progress in construction of its nickel processing facilities.
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