Vale to sell 20 per cent Indonesian nickel

Vale have resolved to sell out 20 per cent of their nickel assets in Indonesia.

The Brazilian miner has signed a divestment contract with the outgoing Indonesian government, to sell the stake to Indonesian parties within five years.

Under a new agreement with the government, Vale will reduce its mining-area size to 190,510 hectares from the previous 118,435.

The company has also agreed to pay more than double existing royalties to the government, from 0.9 per cent to 2 per cent.

The royalty will be upped to 3 percent with a nickel-price increase.

Vale Indonesia president director Nico Kanter said: “Vale believes that with this amendment, the company is well positioned to contribute to the development of Indonesia and continue to create shareholder value.”

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