President Joko Widodo (Jokowi) held a limited meeting regarding the divestment of PT Vale Indonesia Tbk (INCO) to the Mind ID Mining BUMN Holding with several ministers at the Presidential Palace, Wednesday (8/11/2023).
The meeting, which lasted almost an hour, was observed to be attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Energy and Mineral Resources Arifin Tasrif, Minister of Finance Sri Mulyani, and Deputy Minister of BUMN Kartika Wirjoatmodjo.
However, after the meeting, the Coordinating Minister for Economic Affairs was reluctant to discuss the results of the meeting’s decisions. “That’s a question to the Minister of Energy and Mineral Resources,” said Airlangga, at the Presidential Palace Complex, Wednesday (8/11/2023).
Likewise, Minister of Finance Sri Mulyani Indrawati is still reluctant to comment on Vale’s divestment. “Let the gentlemen in charge convey it,” he said.
When asked by the Minister of Energy and Mineral Resources, Arifin Tasrif, he still did not want to reveal the results of the meeting decisions in more detail. However, he promised to announce this on Friday this week. “It’s Friday, it’s Friday. It’s still a process inside,” said Arifin.
However, he confirmed that in the future Indonesia’s portion will become the majority in this Brazilian mining company. “Basically, the majority are Indonesians,” he said.
Apart from that, he said that from the divestment results there would be no mining land that would be reduced or relinquish some of the concession blocks that INCO deemed not to be developing.
Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir opened his voice regarding the plan to acquire PT Vale Indonesia shares by MIND ID Mining BUMN Holding. Currently the process is still ongoing.
According to Erick, currently his party together with the Minister of Energy and Mineral Resources Arifin Tasrif and Vale are continuing to discuss plans to acquire shares. However, he admitted that negotiations to take over the shares were a bit tough. “This is an ongoing discussion. Yes, it’s been a tough (discussion),” said Erick briefly when met at the Ministry of Energy and Mineral Resources Building, Monday (30/10/2023).
Vale Share Composition
Vale Canada Limited and Sumitomo Metal Mining have a divestment obligation of 11%. However, it is reported that Vale will divest a 14% stake. So, if the divestment is 14%, it means that MIND ID will hold 34% of the shares in PT Vale Indonesia Tbk (INCO). Currently, MIND ID only owns 20% of shares in PT Vale Indonesia.
With the 14% share divestment offer, the composition of share ownership in PT Vale Indonesia Tbk will change to the following:
- Vale Canada Limited from the current 43.79% will change to 33.29%.
- Mind ID from the current 20% will change to 34%.
- Sumitomo Metal Mining from the current 15.03% will change to 11.53%.
- Vale Japan Ltd to 0.54%.
- Public becomes 20.64%.
Source: CNBC Indonesia