Energy and Mineral Resources Minister Arifin Tasrif reveals that Indonesia’s state-owned mining holding company MIND ID and PT.Vale Indonesia have reached a deal on divestment share price.
Arifin said the price of the divestment share is lower than Vale’s shares price in the Indonesian stock market on Friday, which was at Rp 3,890 (25 U.S. cents) per share.
The average price of Vale’s share is Rp 4,600 (29 U.S. cents) per share in the last three months.
He said that immediately after achieving the deal, MIND ID completed the transaction for 14 percent of Vale Indonesia shares. ” They have paid already,” Arifin said in Jakarta on Friday, February 16, 2024.
Currently, both parties are finalizing the administration and legal draft of the deal and extension of PT Vale Indonesia’s special mining business permit (IUPK), which will be announced on Monday, February 19,2024. “I want it to be finished by Monday,” he added.
Divestment of Vale Indonesia’s shares is required as one of the conditions so that the extension of its mining contract to a Special Mining Business Licence (IUPK) can be carried out. PT Vale Indonesia’s Contract of Work will expire in December 2025.
Indonesia’s ownership in PT Vale Indonesia (INCO), among others through MIND ID, is 20 percent and another 21.18 percent is spread across the Indonesian stock market. This implies that in the case of the supplementary shares amounted to only 14 percent, MIND ID will possess a 34 percent stake in Vale’s shares.
Currently, Vale Canada Limited (VCL) retains the majority stake in INCO with 43.79 percent of shares, followed by Sumitomo Metal Mining Co. Ltd (SMM) which holds a significant portion at 15.03 percent.
