ASIATODAY.ID, JAKARTA – Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, was also present at the signing of the transaction document for the acquisition of 14 percent of PT Vale Indonesia (INCO) shares by MIND ID (Mining Industry Indonesia).
According to Luhut, this divestment makes the Indonesian Government the largest shareholder in INCO.
“Today marks the Indonesian Government through MIND ID as the largest shareholder of PT Vale Indonesia,” said Luhut in an official statement quoted on Tuesday, February 27 2024.
Luhut detailed that this step also plays a role in Indonesia’s nickel downstream program, especially to supply nickel derivative products to the European and United States (US) markets.
According to Luhut, Vale Indonesia is the company with the largest nickel reserves in Indonesia, and it is hoped that it will play an important role in the nickel downstream program.
“This divestment will be an important thing in Indonesia’s nickel downstream program in the future, especially to supply nickel derivative products to the European and IRA-United States markets,” he continued.
Even though PT Vale Indonesia has good environmental, social and corporate governance (ESG) management, Luhut highlighted delays in PT Vale Indonesia’s downstream program.
He emphasized the importance of MIND ID and the Ministry of Energy and Mineral Resources ensuring that downstream development is profitable, in accordance with the obligations of the Special Mining Business Permit (IUPK).
“I ask that MIND ID and the Ministry of Energy and Mineral Resources can ensure that downstream development can proceed profitably,” said Luhut.
In his statement, Luhut also reminded of unresolved licensing issues, especially regarding special mining business permits (IUPK). He requested that permits which are still pending be issued immediately this week, ensuring the smooth process of this acquisition transaction.
“Finally, I ask that the permits which have not yet been completed, especially the IUPK, be issued immediately this week,” he added.
On Monday, February 26 2024, through the signing of the Definitive Transaction Agreement for the Acquisition of INCO Shares, MIND ID has agreed to acquire 14 percent of the total shares of PT Vale Indonesia, and collaborate with Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd . (SMM).
The agreed share price is IDR 3,050 per share. Deputy Minister of BUMN Kartiko Wirjoatmodjo said the form of transaction was half the purchase of VCL and Sumitomo shares, half a rights issue. (AT Network)
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