Willing To Release 14 Percent Of Shares, Vale Wants To Be A Controller

Rupiah (Photo: Doc. Antara)

JAKARTA - Vale Canada Limited and Sumitomo Metal Mining Co. Ltd is willing to release a validity of 14 percent from the previous 11 percent. This divestment is a must so that Vale can still carry out operations in Indonesia.

Acting Director General of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources Muhammad Wafid said, in the proposal submitted by Vale, Vale Canada and SMM were willing to release 14 percent of their shares so that the BUMN mining holding, MIND ID could become the largest shareholder in PT Vale Indonesia Tbk. Vale also said MIND ID could nominate CEO and President Commissioner while Vale nominated the Chief Operating Officer (COO) or Director of Operations to accelerate future project development.

"Vale nominated COO to ensure good mining operations," Wafid said in a Hearing Meeting with Commission VII DPR RI, Tuesday, August 29.

He added, with Vale's divestment, the composition of PT Vale's shareholders will change, namely Vale Canada Limited from 43.79 percent to 33.29 percent, Mind ID from 20 percent to 34 percent and domiciled as the largest shareholder, Sumitomo Metal Mining from 15.03 percent to 11.53 percent, Vale Japan Ltd to 0.54 percent and the Public to 20.64 percent.

Wafid further added that the business development offered will be under the board of commissioners to accelerate project development in the future.

Later, Vale Canada will provide operational control of PT Vale, Director of Operations and long-term business plans and related parties also have not discussed the share price to be released.

"Vale Canada and SMM are flexible about prices as part of the deal," said Wafid.