The Indonesian government has issued a new mining permit for nickel miner PT Vale Indonesia, according to the country’s Investment Minister Bahlil Lahadalia.
This development comes after the shareholders of Vale Indonesia approved a rights issue earlier this month. The rights issue will facilitate the acquisition of a stake in the company by MIND ID, Indonesia’s state mining holding company.
The issuance of the new permit was a condition required by Indonesia for Vale Indonesia to continue its operations beyond 2025. The previous permit held by the company was set to expire in 2025.
However, the minister did not specify the duration of the new mining permit granted to Vale Indonesia. Typically, mining permits in Indonesia are valid for 10-20 years, with the possibility of extension.
The stake divestment by Vale Indonesia’s foreign partners, including the majority shareholder Vale S.A., was a prerequisite for the Indonesian government to issue the new permit. This is part of the country’s strategy to increase domestic ownership and control over its natural resources.
Vale Indonesia is a major producer of nickel, a key ingredient in the production of electric vehicle batteries. The company’s operations in Indonesia have been crucial in supporting the country’s ambitions to become a global hub for electric vehicle manufacturing.
The issuance of the new mining permit provides regulatory certainty for Vale Indonesia’s operations and aligns with Indonesia’s broader efforts to assert greater control over its natural resources and promote the development of its domestic mining industry.