Vale Will Be Controlled By BUMN Mining Holding, ESDM Asks To Keep Nickel Downstream

JAKARTA - The 14 percent divestment process of PT Vale Indonesia (INCO) to the BUMN mining holding, MIND ID is almost reaching the finish line.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that the signing which agreed on the price of 14 percent of the divestment of shares of PT Vale Indonesia Tbk (INCO) would be carried out next week or Monday, February 26, 2024.

In this regard, the Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana said that anyone who controls Vale will be able to continue to encourage the downstream program mandated by President Joko Widodo and the Law.

"MIND ID or whoever is appointed to walk there, we can ensure that we can continue to maintain the plans in Vale for downstreaming," said Dadan when met by the media at the Ministry of Energy and Mineral Resources Building, Friday, February 23.

With the completion of Vale's divestment, he said, the company's Work Contract (KK) which will expire in December 2025 will automatically be extended to a Special Mining Business License (IUPK).

"That should stick. The contract divestment period is not extended in the sense that if it is not extended, the current plan cannot continue," concluded Dadan.

The release of Vale Indonesia's shares is a burden that must be fulfilled for the extension of the contract which will expire on December 28, 2025.

Where, at least 51 percent of the shares are controlled by the Indonesian side.

The composition of Vale Indonesia's shares is 43.79 percent led by Vale Canada Limited who is also a controller. Then, 15.03 held by Sumitomo Metal Mining.

Then, 20 percent is held by the public by being registered on the Indonesia Stock Exchange (IDX).