Vale Offers 14 Percent Shares To MIND ID, Here's The Composition

Acting Director General of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources Muhammad Wafid. (Photo: Maria Trisnawati/VOI)

JAKARTA - PT Vale Indonesia Tbk will release its shares in order to obtain an operating permit in Indonesia.

Acting Director General of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources Muhammad Wafid explained, in this divestment process, Vale Canada and Sumitomo Metal Mining offered to release their shares by 14 percent from the previous 11 percent to the BUMN mining holding company, MIND ID.

"PT Vale provides the following share divestment offer for SMM and Vale Canada has an 11 percent divestment obligation and offers 14 percent higher," Wafid said in a Hearing Meeting with Commission VII DPR RI, Sealsa, August 29.

With this divestment by Vale Canada and SMM, Wafid continued, the composition of PT Vale's shareholders will change as follows:

Vale Canada Limited from the current 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 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.