Vale Will Divest 14% Stake in Vale Indonesia (INCO) - Minister

DIVESTMENT - JAKARTA. Vale will divest its 14% stake in its Indonesian nickel miner Vale Indonesia (INCO) to bring their holding below the maximum permitted for overseas firms, Indonesia's mining minister said on Friday.

Shares divestment is a condition Indonesia requires to extend the operation permit for Vale Indonesia. Vale's current contract is due to end in 2025.

Under Indonesian rules, foreign miners are required to divest 51% of their stake to local buyers after a certain period of operation.

Minister Arifin Tasrif told reporters there will be a "special pricing" for the divestment, though he did not provide details of the pricing, adding the government is aiming for the deal to be secured this year.

Vale could not be immediately reached for comment.