We hope the process will be completed next Monday (February 19, 2024)...
Jakarta (ANTARA) - Minister of Energy and Mineral Resources Arifin Tasrif revealed that the divestment of 14 percent of the shares of nickel mining company PT Vale Indonesia to Indonesian mining holding MIND ID is close to completion.

"(The agreement) has been reached; it is proportional to the divested shares percentage," Tasrif told the press at the ministry's office here on Friday.

He expressed the hope that the divestment process would be wrapped up soon as the only remaining step is an administrative formality.

"We will wait in the coming days. We hope the process will be completed next Monday (February 19, 2024) as the team continues working," the minister informed.

Tasrif disclosed that the divestment price has been agreed at Rp3 thousand (US$0.19) per share.

The Head of Agreement (HoA) on the divestment of 14 percent of Vale Indonesia shares was signed last November on the sidelines of the 2023 Asia-Pacific Economic Cooperation (APEC) forum in San Francisco, the United States.

Currently, the largest shareholders of Vale Indonesia include Vale Canada, which holds a 43.79-percent stake in the company; MIND ID, which owns 20 percent of the shares; and Sumitomo Metal Mining, which has 15.03 percent of the shares.

Meanwhile, 21.18 percent of Vale Indonesia shares are held by the public.

The government is looking to increase its stake in PT Vale Indonesia through divestment by other shareholders, considering the company's operational period and contract expire on December 28, 2025.

The divestment would enable the government to advance its commodity downstreaming and industrialization policies in the interest of the nation. It is also a requisite for Vale Indonesia to extend its mining business contract in Indonesia.

Related news: Electric cars are future of Indonesia's automotive industry: Jokowi
Related news: Nickel Industries announces scholarships for Morowali students

Translator: Benardy F, Nabil Ihsan
Editor: Rahmad Nasution
Copyright © ANTARA 2024