Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Shareholders of nickel miner PT Vale Indonesia approved a rights issue that will facilitate the acquisition of a stake by Indonesia state mining holding company MIND ID, the company said in a statement late on Friday.
Vale Canada and Japan’s Sumitomo Metal Mining had agreed to sell 14% of the Indonesian unit to MIND ID to fulfil a divestment requirement to secure new mining permit.
The statement said Vale Indonesia will issue 603 million new shares under a rights issuance. Vale Canada, Sumitomo and Vale Japan will relinquish their entitlement of the rights issue to MIND ID.
On top of that, Vale Canada, Sumitomo and Vale Japan Ltd will also sell part of their shares to MIND ID.
After the transactions, MIND ID will become the largest shareholders with a 34% stake in the nickel company, from 20% now, which MIND ID and Vale Canada will become “joint controller” of Vale Indonesia.
The divestment is required by Indonesia to issue a new mining permit for Vale Indonesia. Its current contract will expire in 2025.
(By Bernadette Christina and Fransiska Nangoy; Editing by Shri Navaratnam)
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