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Indonesia state company Inalum to buy stake in Vale

Christian Fernsby |
Indonesia's government has appointed state miner PT Inalum to purchase a stake that PT Vale Indonesia intends to sell, the Director General of Coal and Minerals, Bambang Gatot Ariyono, said.

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Vale, one of Indonesia's largest nickel miners, is set to divest around 20% of its stake to local investor to meet new regulations aimed at limiting foreign ownership of its mining resources.

The company had said it aims to conduct the stake sale in October.

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%.

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