Indonesia’s state miner agrees on price scheme to acquire Vale unit

State mining holding company Mining Industry Indonesia (MIND ID) will use the average stock price for the past 12 months to acquire a 20% stake in nickel company Vale Indonesia, a senior executive told parliament on Wednesday.

Orias Petrus Moedak, MIND ID’s CEO, hopes to gain approval from stakeholders and commissioners at both MIND ID and Vale Indonesia in February.

“We hope to sign an agreement in March at the latest. And the payment will be concluded within six months after an agreement is signed, based on a stock exchange mechanism. If we sign it on March, it will be finished in September,” Moedak said.

Acquisition will be funded by loans, with a four-year grace period.

(By Wilda Asmarini and Tabita Diela; Editing by Shailesh Kuber)

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