Vale's Stock Divestment Has No Bright Spot, Minister Of Energy And Mineral Resources: We Want It To Be Faster

Minister of Energy and Mineral Resources Arifin Tasrif (ANTARA)

JAKARTA - The price-fixing process for the divestment of shares of PT Vale Indonesia (INCO) has yet to find a bright spot. It is known that until now Vale and the BUMN mining holding company, MIND ID are still negotiating regarding the price of 14 percent of Vale's shares to be annexed.

Responding to this, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif asked for this process to be accelerated. This is because the divestment process is one of the requirements for Vale to extend her Work Contract (KK) to become a Special Mining Business Permit (IUPK) which was confirmed to expire in December 2025.

"We want it to be faster, so that there is certainty," said Arifin, quoted on Saturday, February 3.

Arifin said, to speed up the process, the Minister of State-Owned Enterprises (BUMN) Erick Thohir had sent a letter urging the acceleration of the divestment process.

"There has been a letter from the Minister of SOEs to quickly resolve it with several points that must be resolved. Now we are in the process," continued Arifin.

However, Arifin was reluctant to specify the value and share price that Vale would give considering that the Ministry of Energy and Mineral Resources had provided benchmarks and sizes as well as formulas since the beginning of negotiations.

"So regarding values, what are all kinds of things, just go ahead. But indeed from the ministry there is already a benchmark first. What formulation," he added.

Meanwhile, regarding the special price that Vale will pay, Arifin reiterated that it is not a matter of business but a matter of negotiation between the companies involved, namely Vale and MIND ID.

Previously, Erick Thohir revealed that the negotiations for the release or divestment of Vale's shares were still in progress. Erick said the price offered by Vale was still too expensive.

Therefore, Erick said that his party continues to try to reduce the price. Erick said that the Indonesian side wants to get the best price

"Still surviving BUMN, still negotiating," Erick said at a press conference at the Ministry of SOEs, Jakarta, written Wednesday, December 20.

As is known, Vale Indonesia's shareholders, Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd (SMM) agreed to release 14 percent of their shares to PT Mineral Industri Indonesia (Persero) or MIND ID.