Vale Base Metals Limited (“VBM”) announced today that its wholly owned subsidiary Vale Canada Limited (“VCL”) signed a Heads of Agreement (“Agreement”) with PT Mineral Industri Indonesia (“MIND ID”) and Sumitomo Metal Mining Co., Ltd. (“SMM”) regarding the divestment of an approximate 14% equity interest in PT Vale Indonesia Tbk (“PT VaIe”) from VCL and SMM to MIND ID.

Upon completion, state-owned mining company MIND ID will become the largest shareholder of PT Vale holding approximately 34% of the issued shares, with VCL and SMM holding approximately 33.9% and approximately 11.5% respectively. A balanced governance structure will support both the stability and growth of PT Vale’s continued operations in Indonesia.

VBM Chief Executive Officer and PT Vale President Commissioner Deshnee Naidoo said, “This Agreement reinforces our commitment to sustainably advance Indonesia’s nickel industry, building on our 55-year operating history in the country. As the benchmark supplier of responsibly produced low-carbon nickel and other metals vital to the energy transition, we look forward to working within the new shareholding structure with our partners to support the country’s downstreaming ambitions and deliver strong economic value to our stakeholders and communities over the long run.”

The Agreement was signed on the sidelines of the Asia-Pacific Economic Cooperation Leaders’ Meeting 2023, at a ceremony attended by Indonesia President Joko Widodo, Vice Minister of State-Owned Enterprises Kartika Wirjoatmodjo and other government officials.

The Agreement is a significant step towards a mutually beneficial outcome that meets Indonesian divestment obligations and clears the way to renewal of PT Vale’s mining license beyond 2025, which further enables PT Vale’s investments and new growth projects at Bahodopi, Sorowako and Pomalaa. Together this represents US$8.6 billion in investment for Indonesia. Indonesia and PT Vale will remain important drivers of VBM’s global nickel production growth, which has potential to increase to more than 300 kt/year from roughly 175 kt/year currently.

The transaction is expected to close in 2024, subject to customary closing conditions.

About Vale Base Metals

Vale Base Metals, the holding entity for Vale’s energy transition metals business, is one of the world’s largest producers of high-quality nickel and an important producer of copper and responsibly sourced cobalt. With a corporate presence in Toronto, Canada, and operations in Newfoundland & Labrador, Ontario, Manitoba, Indonesia, Brazil, the UK and Japan, the business delivers critical building blocks for a cleaner, greener future.