Will Be Different From Freeport, MIND ID Boss Wants To Be A Vale Controller

Mine (photo: dock. intermediate)

JAKARTA - President Director of the Mining BUMN Holding MIND ID Hendi Prio Santoso revealed that Vale's share divestment would be different from the divestment of PT Freeport Indonesia. Hendi emphasized that his party was determined to be a controlling company.

"It's different (with Freeport) because we have to be the controller, the government has mandated it," he told the media, Monday, August 14.

Hendi admitted that he was confident in being the controller because he had support from the government. In addition, the reason he wanted to be the controller was because Vale's mining was considered lacking.

"Because we want to ensure development occurs. Development in terms of potential because so far, since 2014 the development has been lacking if we quote the minister," added Hendi.

Hendi added that until now his party together with Vale are still negotiating and discussing the divestment of this mine.

He also said that until now it was not certain that Vale would release 14 percent of his shares to Indonesia.

However, he hopes that this negotiation process will be completed in the near future.

"We want it as soon as possible. God willing," continued Hendi.

Previously, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif explained that it had now been decided that Vale would release 14 percent of its shares to Indonesia through the Mining Mind ID BUMN holding.

"So Vale has finished. Now it's just a business to business (Vale with MIND ID) regarding divestment," Arifin told the media at his office, Friday, August 4.

Arifin also confirmed that currently Vale was willing to release its shares by 54 percent.

"In the past, it had divested 40, now it's 14 again, so it's 54 percent," added Arifin.

However, he was reluctant to explain who controlled Vale's assets and finances because it was a decision between the two companies.

Meanwhile, regarding the divestment value, Arifin only said that there would be a discount on the price from Vale.

For your information, currently the composition of Vale Indonesia's shareholders consists of 43.79 percent owned by Vale Canada Limited.

Then, 15.03 percent belongs to Sumitomo Metal Mining Co., Ltd (SMM).

Then, Vale Japan Ltd's 0.54 percent. Meanwhile, 21.18 percent became public shares listed on the IDX, and 20 percent owned by MIND ID.