Vale Canada Completes $155 Million Sale of Stake in Indonesian Subsidiary

Vale Canada Limited, the Canadian subsidiary of Brazil's Vale, has finalized the sale of its stake in Vale Indonesia for $155 million (144 million euros) in cash. The shares have been sold to Japan's Sumitomo Corporation and the Indonesian state mining company, Mind ID.

Following the sale, Mind ID now holds approximately 34% of Vale Indonesia's shares, with Vale Canada and Sumitomo holding around 33.9% and 11.5%, respectively. The remaining shares are traded on the Indonesian Stock Exchange.

This divestment also comes with the issuance of a special mining license from the Indonesian government, allowing Vale Indonesia to operate legally until December 2035, with the possibility of extending the license beyond this period. This new license enables Vale to further capitalize on its investments in Indonesian projects.

Vale Canada retains significant economic interests in Vale Indonesia as a non-operated joint venture and will maintain governance through board appointments. Additionally, Vale Canada's existing purchase rights are preserved.

"Vale remains committed to enhancing regional opportunities for the responsible production of nickel, a metal essential to the global energy transition," the company stated.