Indonesia extends Vale’s mining permit to 2035
Make us a preferred source
Make us a preferred source on Google
The news: PT Vale Indonesia has been granted an extension of its special mining business permit by the Government of Indonesia, allowing the company to continue operations until December 28, 2035.
The numbers: The extension is related to a deal under which the state-owned holding company, Mining Industry Indonesia, will buy an additional 14% stake in Vale Indonesia from Vale SA and Sumitomo Metal Mining Co. The deal will increase the Indonesian government’s stake in the company to 34%, making it the nickel-miner's largest shareholder.
Context: The news comes as talks progress between Stellantis, Huayou Cobalt, and Vale to invest in a nickel smelter in Indonesia.
According to sources cited by the Financial Times, the owner of Peugeot, Fiat and Jeep brand, Stellantis, is in talks with Vale to invest in a high-press acid leaching plant which would convert low-grade nickel ore to battery-grade metal. Huayou, which is a leading producer of nickel at cobalt, is set to hold a stake in the project.
Indonesia has been vying to attract European carmakers to invest in its nickel industry as it seeks to reduce its reliance on Chinese investment. The discussions come despite a significant global slowdown in demand for electric vehicles.
The sources: PT Vale Indonesia press release, Financial Times
