Vale Contract Extension Completed, IUPK Recommendations Published Today

Illustration. (Photo: Doc. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif confirmed that the process of extending the Work Contract (KK) of PT Vale Indonesia Tbk (INCO) has been completed. Just so you know, Vale has released 14 percent of her shares to the BUMN mining holding company, MIND ID and received an extension of the KK into a Special Mining Business Permit (IUPK).

Arifin said his ministry had completed and provided document recommendations this week.

"The official document is this week. Yes (today) God willing," said Arifin when met by the media at the Ministry of Energy and Mineral Resources Building, Friday, March 22.

With the issuance of the IUPK recommendation, the contract given is for 20 years.

"Yes, I think MIND ID is already the most big there," concluded Arifin.

Meanwhile, INCO will increase capital through Pre-emptive Rights (PMHMETD) or rights issue.

Citing the prospectus, Vale will issue a maximum of 603,445,814 new company shares with a nominal value of IDR 25 per share.

Through this corporate action, the BUMN mining holding, MIND ID is certain to be Vale's largest shareholder.

"MIND ID will implement all of these Preemptive Rights and Preemptive Rights which will become MIND ID's portion in PMHMETD. MIND ID will receive an additional 14 percent stake so that it becomes INCO's largest single shareholder with 34 percent share ownership," wrote Vale's management quoted Friday, March 15.

Regarding the rights issue plan, the company is required to obtain shareholder approval at the Extraordinary General Meeting of Shareholders (EGMS) scheduled for April 19, 2024.