The discussion regarding the divestment and contract extension of PT Vale Indonesia Tbk (INCO) has now reached the Ministry of State Owned Company (BUMN) led by Erick Thohir. The Ministry of Energy and Mineral Resources (ESDM) claims to have completed the evaluation, which was their responsibility.
Arifin Tasrif, the Minister of ESDM, emphasized that discussions on divestment and contract extensions have been completed on their end. The next steps involve finalizing the process with the Ministry of BUMN, which will execute the divestment through Mineral Industry Indonesia (MIND ID).
"It's just a finalization with the Ministry of BUMN. If it's from the Ministry of ESDM, it's not an issue anymore. As for the extension regarding their land, it's our concern, but the business matters are there (Ministry of BUMN)," said Arifin during an interview at the Ministry of ESDM on Thursday (26/10).
Earlier, Arifin revealed that Vale agreed to release 14% of its shares, an increase from the initial 11%.
"The last percentage is 11 + 3. So, with this 14%, MIND ID composition will be increase" he said.
Divestment is a crucial requirement for Vale, currently in the process of extending its contract, which is set to expire in 2025. The obligation to divest 51% of shares is carried out progressively by the central government, local governments, SOEs, regional SOEs, or national private business entities. If there are no interested parties, the divestment offer is conducted through the Indonesia Stock Exchange to manage the extension of Vale's Contract of Work after December 29, 2025. This aligns with Article 147 of Government Regulation No. 96 of 2021 concerning the Implementation of Mineral Mining Business Activities, where PT Vale is required to divest an additional 11% of its shares.
The valuation of the divestment share price is calculated based on a fair market value without taking into account mineral reserves, except those that can be mined during the contract extension period of the Special Mining Business License (IUPK).
However, it has been revealed that MIND ID also desires control over Vale's shares, as they believe that the 14% shares do not include control rights.
Image source: Dunia Energi
Source: www.dunia energi.com/Keputusan Final Divestasi Vale Indonesia Ada Di Tangan Erick Thohir
