Jakarta. Nickel mining company Vale Indonesia has opted to transfer an additional 14 percent of its stakes to MIND ID, a consortium of state-run mining companies, Energy and Mineral Resources Minister Arifin Tasrif confirmed on Friday.

"With this decision, MIND ID will become the majority shareholder with a 34 percent stake in Vale Indonesia," Arifin told Antara news agency.

While the minister refrained from disclosing the transaction's value, he said negotiations are ongoing, focusing on securing a favorable and "special price."

Vale Indonesia, a subsidiary of Toronto-based Vale Base Metals, needed to release only 11 percent of its stakes to fulfill the requirement for a simple majority of local ownership, a condition for a government contract extension, Arifin said.

"Vale has already divested 40 percent of stakes -- 20 percent to state-owned companies and 20 percent to the public," noted Arifin.

Under increasing pressure from politicians and economists, the Indonesian government has been urged to acquire a commanding stake in Vale through MIND ID.

Analysts have argued that the additional 14 percent stake won't allow MIND ID to make strategic decisions such as new investments or project expansion.

Before this development, Vale Indonesia's ownership structure was as follows: Vale Canada Limited held 43.79 percent, MIND ID held 20 percent, community members held 20.49 percent, and Sumitomo Metal Mining Co. Ltd. held 15.03 percent.

Vale Indonesia operates a significant mining block in East Luwu Regency, South Sulawesi, and received a concession extension from the government in January 1996. The concession is set to expire on Dec. 28, 2025.