MIND ID (Mining Industry Indonesia), a state-owned mining holding company, is in a difficult position to acquire 51% of PT Vale Indonesia Tbk (INCO) shares.
MIND ID to increase its shares in Vale to 31%
Currently, MIND ID is in the process of purchasing 11% of Vale Indonesia's shares and becoming the majority shareholder in PT Vale Indonesia Tbk. The move is in accordance with PT Vale Indonesia Tbk's obligation to divest 51% of its shares to MIND ID.
So far, MIND ID, through PT Indonesia Asahan Aluminum, already owns 20% of PT Vale Indonesia Tbk's shares, if the 11% negotiation process is completed and approved, MIND ID will own 31% of the shares.
Minerba One Data Indonesia (MODI) explains that PT Vale Indonesia Tbk's shareholders consist of Vale Canada Ltd (43.79%), Sumitomo Metal Mining (15.03%), PT Indonesia Asahan Aluminum (20%), Vale Japan Ltd, the public (20.49%), and Sumitomo Corporations (0.14%).
Pahala Nugraha Mansury, Deputy Minister of BUMN confirmed that the divestment negotiation process between MIND ID and PT Vale Indonesia Tbk is still ongoing.
The Ministry of State-Owned Enterprises (BUMN) is still trying to push for the potential to manage majority shares with PT Vale Indonesia Tbk.
In addition, one of the objectives of the acquisition of PT Vale Indonesia Tbk's shares is to secure supplies of base metals such as nickel for electric car batteries.
Competition in acquiring divestment shares
Mansury explained that he was not sure whether MIND ID would get 51% or not, but he hoped MIND ID would become a majority controller of the share. However, the difficulty to actually obtain this majority share is still not known with certainty.
"We will talk to them later, can't be answered now," said Mansury, on Monday, July 3, 2023.
He was also reluctant to comment on the possible timeline of owning 51% of PT Vale Indonesia Tbk's shares.
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