INCO – Delays in the divestment to MIND ID

INCO – Delays in the divestment to MIND ID Vale Indonesia (INCO) is encountering delays in the divestment process to Mining Industry Indonesia (MIND ID) due to ongoing negotiations on the execution price. Vale Canada Limited (VCL) and Sumitomo Metal Mining (SMM) have agreed to transfer approximately 14% ownership proportionally to MIND ID, with the transaction expected to occur gradually in 2024, and the valuation phase is currently underway. The decision to release INCO shares to MIND ID remains important as a requirement for extending the Contract of Work (CoW) to a Special Mining Business License (IUPK), aiming to prolong the expiring CoW set to conclude in Dec'25. The decision on the CoW extension has broader implications for three major nickel smelter projects: the HPAL Smelter in Sorowako, the RKEF Smelter in Bahadopi, and the HPAL Smelter in Pomalaa. Furthermore, INCO's mega-project development aligns with its initial plans, with capex expected to reach approximately USD719 mn by 9M23, including estimated allocations for the Morowali project (Source: Bisnis Indonesia)