Vale’s divestment a tactical move for national electric cars: Thohir

Jakarta (ANTARA) - The divestment of Vale Indonesia, subsidiary of the multi-mining corporation in Brazil, Vale, is part of a strategic measure to develop the national electric vehicle industry, State-Owned Enterprises (SOEs) Minister Erick Thohir revealed here, Friday.

Electric vehicles will likely to be a significant part of the future, and since Indonesia's total population reaches 271 million people, this type of vehicle has good business prospects ahead, Thohir stated.

Furthermore, President Joko Widodo has drawn weightage to using electric vehicles as a means of public transportation in the new capital, for which the battery component, nickel that Vale Indonesia produces, is viewed as important.

"Our country is one of the world's largest producers of nickel. Hence, Vale's divestment could play a significant role in our strategic plan ahead," Thohir noted.

The process is currently ongoing and expected to be completed by mid-2020.

Earlier, the Mining Industry Indonesia (MIND ID), as the parent company of SOE on mining and Vale Indonesia along with Vale Canada Limited (VCL) and Sumitomo Metal Mining (SMM) had inked an initial agreement involving 20-percent stock divestment of Vale Indonesia.

The government assigned MIND ID, as a brand new identity of Indonesia Asahan Aluminium, to possess the divestment share. This measure, however, is viewed as being in line with MIND ID's obligation to manage Indonesia's strategic mining resources.

Source: Antara News

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