President Director Of Mind ID Says Divestment Of 14 Percent Of Vale's Shares Is Not Final

Mining illustration (Photo: dock. Antara)

JAKARTA - The divestment of shares of PT Vale is still ongoing. President Director of Holding BUMN Mining MIND ID Hendi Prio Santoso revealed that the divestment of vale shares of 14 percent is not final and there is a possibility of more than that amount.

"Not necessarily (only 14 percent). Still being negotiated," Hendi told the media quoted on Tuesday, August 15.

Hendi also emphasized that the Vale divestment process would be different from what happened to PF Freeport. Hendi believes that later MIND ID will become the financial and operational controller of the nickel mining company.

"It's different. We have to be the controller because it's the government's mandate," continued Hendi.

Regarding the urgency of being the controller, Hendi explained that his party assessed that Vale's mining development was still lacking.

"Because we want to ensure development occurs. Development in terms of potential because so far, since 2014 the development has been lacking if we quote the minister," added Hendi.

In accordance with Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba), PT Vale Indonesia whose Work Contract concessions will expire on December 28, 2025, is required to fulfill share divestment of 51 percent in stages to the Central Government, Regional Government, BUMN, regional-owned enterprises, and/or national private business entities.

For your information, currently the composition of Vale Indonesia's shareholders consists of 43.79 percent owned by Vale Canada Limited. Then, 15.03 percent belongs to Sumitomo Metal Mining Co., Ltd (SMM).

Then, Vale Japan Ltd's 0.54 percent. Meanwhile, 21.18 percent became public shares listed on the IDX, and 20 percent owned by MIND ID.