Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) revealed that the final decision regarding the release of PT Vale Indonesia shares to the MIND ID Tambang BUMN Holding is still awaiting approval from the Ministry of BUMN.
Minister of Energy and Mineral Resources Arifin Tasrif said that the process of releasing Vale is currently just waiting for finalization with the Ministry of BUMN. He said that the Vale shares that will be transferred to MIND ID are planned to be around 11-14%.
“Just finalize it with BUMN. From the Ministry of Energy and Mineral Resources, there are no problems,” said Arifin when met at the Ministry of Energy and Mineral Resources Building, Jakarta, Thursday (26/10/2023).
Arifin said, if the divestment of Vale shares has been fulfilled, the government will grant an extension to the Contract of Work which will end in 2025, then extend it to a Special Mining Business Permit (IUPK).
“I already said, if all the requirements have been met, yes, it will be given. But it’s still with BUMN,” he said.
Previously, MIND ID Mining BUMN Holding said that it was currently negotiating with PT Vale Indonesia regarding share divestment. Primarily, as a condition for extending Vale’s Contract of Work (KK) to become a Special Mining Business Permit (IUPK).
MIND ID President Director Hendi Prio Santoso revealed that the process of acquiring Vale shares is currently still in progress. However, he confirmed that the Vale shares that will be transferred to BUMN Mining Holding could be more than 14%.
“Not 14%. Not necessarily. Still being negotiated,” he said when met in Jakarta, Monday (14/8/2023).
Apart from that, Hendi is also optimistic that with the corporate action carried out by MIND ID, his party will become the financial and operational controller at PT Vale Indonesia.
“We have to be the controllers. That is the government’s mandate,” added Hendi.
Initially Vale will only release 11% shares to MIND ID. This is related to the obligation to divest 51% of Vale’s shares to Indonesia, before Vale proposes a contract extension which will end in 2025.
[Gambas:Video CNBC]
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(wia)