Brazilian mining company Vale said that its subsidiary Vale Canada and Sumitomo Metal Mining have agreed to sell a 20% stake of Indonesian copper ores company Vale Indonesia to Indonesia Asahan Aluminium (Persero) (Inalum) for a sum of IDR5.52bn ($371m).

Vale is selling a stake of 14.9% for about $290 million, while the Japan-based Sumitomo Metal Mining is divesting a stake of 5.1% in Vale Indonesia. The closing of the deal is expected to occur by the end of this year subject to regulatory approvals.

In 2014, Vale Indonesia agreed to an amendment to its 1996 contract of work with the Indonesian government,
which will expire in December 2025. For the copper ores company to be entitled to the extension of its license to operate beyond 2025, some requirements have to be met, including the offloading of 20% ownership in it to Indonesian participants.

Following the closing of the transaction, Vale will hold a stake of 44.3% and Sumitomo Metal Mining will have a stake of 15% in the Indonesian copper ores company.

Inalum, which is a state-owned entity in Indonesia for investments in the mining sector, will hold a 20% stake, while the remaining 21.18% stake is owned by public shareholders and others.

Vale stated: “Indonesia plays a major strategic role within the global nickel industry. This transaction represents an
important development in PT Vale’s long presence in Indonesia and reinforces Vale’s commitment to keep investing in the region.”

  Inalum, Indonesia, Indonesia Asahan Aluminium (Persero), Vale, Vale Canada, Vale Indonesia