In The Contract Extension Process, The Minister Of Energy And Mineral Resources Said Vale Must Be Divested 11 Percent Of The Share

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. Antara)

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the contract extension of PT Vale Indonesia Tbk was being processed by the company.

Arifin said, to extend the contract, Vale must divest his shares by 11 percent.

"It is in the process and there is an obligation to divest 11 percent. This is being processed," said Arifin, who was met at the Ministry of Energy and Mineral Resources Building, Friday, February 17.

Arifin added that currently Vale also still has homework, such as the downstream program and the battery component production program.

"Vale also now has a program to carry out downstreaming. There is some cooperation there to get to the production of battery components according to the mandate," added Arifin.

It is known that the mining contract for Vale Indonesia will expire in December 2025.

Previously, SOE Minister Erick Thohir also revealed that the government was negotiating with nickel mining producers whose shares were majority controlled by Vale SAS and Vale Canada Limited.

But unfortunately, Erick was reluctant to reveal what were the points of negotiations.

Even so, Erick emphasized, the government will attract these strategic multinational companies to strengthen the mining ecosystem or downstream to support the EV Battery industry in the country.

Meanwhile, MIND ID mining BUMN Holding stated that it also plans to increase the share portion of PT Vale.

President Director of MIND ID Hendi Prio Santoso said, based on the results of a limited meeting with the President, the Minister of Energy and Mineral Resources and the Minister of SOEs, his party accepted the decision that PT Vale should be increased by a portion controlled by the state through MIND ID.

"The decision is that Vale must be increased in portion controlled by the state through Mind id so that we can become the party that consolidates PT Vale as will happen this year with Freeport Indonesia," Hendi explained in a Hearing Meeting with Commission VII on Monday, February 6.

That way, later MIND ID will be the party that consolidates or reports PT Vale's finances.

"We will obey the government's decision," concluded Hendi.