The sale is valued at $290 million, for the sale, and Sumitomo is also participating.

After the closing of the transaction, the Indonesian state-owned company will have acquired 20% of PT Vale shares, being 14.9% from VCL and 5.1% from Sumitomo.

Vale and Sumitomo will have a stake of 44.3% and 15% in PT Vale, respectively, totalling a 59.3% participation.

According to Indonesian mining rules, foreign-controlled miners are required to gradually start reducing ownership after five years of production. Within 10 years, foreign ownership should be cut to at least 49%.

“Indonesia plays a major strategic role within the global nickel industry. This transaction represents an important development in PT Vale’s long presence in Indonesia and reinforces Vale’s commitment to keep investing in the region,” Vale said in a media release.

PT Vale recorded positive earnings of $29 million in Q1 2020, with production of 17,614 tonnes.

The transaction is expected to happen by the end of 2020.