Jakarta, CNBC Indonesia – Minister of State-Owned Enterprises (BUMN) Erick Thohir has opened his voice regarding the plan to acquire PT Vale Indonesia Tbk (INCO) 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 the plan to acquire Vale shares by MIND ID. 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).
The Ministry of Energy and Mineral Resources (ESDM) several days ago revealed that the final decision regarding the acquisition of shares in PT Vale Indonesia by the BUMN Tambang MIND ID Holding was still in progress. Currently the ball is in the hands of the Ministry of BUMN.
Minister of Energy and Mineral Resources Arifin Tasrif revealed that the Vale shares that will be transferred to MIND ID are planned to be around 11-14%. However, the process of releasing Vale shares is just waiting for finalization with the Ministry of BUMN. “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, quoted Friday (27/10/2023).
He also confirmed that if Vale has released its shares according to the specified conditions, the government will grant an extension to its mining business permit which will expire in 2025.
“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 would be transferred to the 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.
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Originally posted 2023-10-30 05:50:00.