Korea Zinc pulls $1.8 billion share sale plan after probe
The world’s largest zinc smelter has been caught up for months in a fight between its largest shareholders over strategy and direction.
Indonesia’s government has appointed state miner PT Inalum to purchase a stake that PT Vale Indonesia intends to sell, the Director General of Coal and Minerals, Bambang Gatot Ariyono, said on Monday.
Vale, one of Indonesia’s largest nickel miners, is set to divest around 20% of its stake to local investor to meet new regulations aimed at limiting foreign ownership of its mining resources.
The company had said it aims to conduct the stake sale in October.
According to Indonesian mining rules, foreign-controlled miners are required to gradually start reducing ownership after five years of production. Within 10 years, foreign ownership should be cut to at least 49%.
As per end-2018, company data showed 59% of its shares were controlled by Brazil’s Vale SA. Sumitomo Metal Mining Co Ltd owned around a 20% stake in the company.
Ariyono declined to disclose the value of the deal.
Vale Indonesia officials were not immediately available for comments.
(By Wilda Asmarini and Fransiska Nangoy; Editing by Shri Navaratnam and Louise Heavens)
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