Vale Indonesia's Shareholder Composition: Who Holds the Largest Stake?

PT Vale Indonesia Tbk (INCO) will divest shares to meet the requirements for the extension of its mining contract of work (KK), which expires on December 28, 2025. Vale is reportedly going to transfer 14% of its shares to the state-owned mining holding company, PT Mineral Industri Indonesia, also known as MIND ID.

So, what is the current shareholding composition of Vale Indonesia?

According to Vale's shareholder information website, the company is majority-owned by Vale Canada Limited with a 43.79% stake.

This is followed by MIND ID with 20%, Sumitomo Metal Mining with 15.03%, Vale Japan Limited with 0.54%, and the remaining 20.64% held by the public.

Meanwhile, Minister of State-Owned Enterprises Erick Thohir stated that the government aims to increase its stake in Vale beyond the current 20% held through MIND ID. Erick even said the government wants to become the controlling shareholder of Vale Indonesia.

"We want the government to have a larger share. (Becoming the controlling shareholder), that's all still under discussion," said Erick, as quoted by *Katadata* on Monday (July 17, 2023).

Erick continued, stating that state-owned enterprises also have sufficient funding to acquire Vale's divestment obligation to the government as a condition for changing the contract of work (KK) status to a special mining business license (IUPK).

"No matter how many shares Vale releases, state-owned enterprises have the money. We have a net income of Rp 250 trillion," said Erick.

Previously, MIND ID planned to increase its stake in Vale to 40% from its current holding.

Head of Institutional Relations Division at MIND ID, Selly Adriatika, said that by becoming the controlling shareholder of INCO, the company can contribute to the development of the mining and mineral industry in Indonesia, especially in the nickel sector.

"However, MIND ID remains supportive of the policies that will be determined by the government regarding INCO," said Selly, in an official statement on Thursday (July 6, 2023).