Vale’s Indonesian unit, PT Vale Indonesia, has been granted an extension of its IUPK, ensuring operations until 28 December 2035.

 The IUPK provides PT Vale with legal certainty to continue its operations within the concession area and supports the company’s growth strategy.

Under the terms of the IUPK, PT Vale is required to complete the construction of new processing and refining facilities including downstream developments within a specified timeline.

These projects must comply with existing laws, feasibility studies and the company’s commitment to good mining practices and environmental, social, and governance standards.

With the IUPK, PT Vale is now obliged to share 10% of its net income with the Indonesian Government as profit sharing.

The IUPK’s validity extends beyond the original contract of work expiration date of 28 December 2025, covering an additional ten-year extension period.

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This extension forms part of an agreement where Indonesia’s mining industry holding company Mining Industry Indonesia acquires an additional 14% stake in Vale Indonesia from Vale SA and Sumitomo Metal Mining.

This deal, which was announced earlier this year, will result in the Indonesian Government becoming the company’s largest shareholder with a 34% ownership stake.

Recently, Vale completed the sale of its 10% stake in Vale Base Metals to Manara Minerals for $2.5bn (12.81bn reias), upon securing approvals from relevant authorities.

Manara is a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund.