REUTERS/Ritsuko Shimizu/File Photo Acquire Licensing RightsJAKARTA, Nov 18 (Reuters) - Vale Base Metals said its Vale Canada unit and Japan's Sumitomo Metal Mining signed an initial agreement on Friday to sell a 14% stake in their Indonesian nickel mining unit to Indonesia's state miner.
Share divestment is a condition required by Indonesia to extend Vale Indonesia's mining permit, which will otherwise end in 2025.
Upon completion, MIND ID will become the largest shareholder of Vale Indonesia with its stake rising to 34% from 20%.
Vale Canada will hold 33.9%, down from 43.79%, and Sumitomo 11.5%, down from 15.03%, according to the statement.
"The divestment will make MIND ID as the biggest shareholder of Vale (Indonesia), so MIND ID and Vale Canada can exercise a joint control over Vale (Indonesia)," he said in a statement on Friday.
Persons:
Ritsuko Shimizu, Wirjoatmodjo, Deshnee Naidoo, Joko Widodo, Widodo, Fransiska Nangoy, Stefanno Sulaiman, Kirsten Donovan, William Mallard
Organizations:
Sumitomo Metal Mining, REUTERS, Rights, Base Metals, Vale Canada, Vale, Sumitomo, Mineral Industri, Vale Base Metals, Reuters, Thomson
Locations:
Tokyo, Japan, Rights JAKARTA, Vale Canada, Mineral Industri Indonesia, Indonesia, Vale Indonesia, Indonesian, Vale