JAKARTA. PT Vale Indonesia Tbk (INCO) is arranging a transfer of 11% of its shares, reassigning them to MIND ID, a state-owned mining holding. This stock divestment is considered mandatory following the end of the contract of work (COW) between INCO and the government that is nearing.
Febriany Eddy, President Director of Vale Indonesia, explained that the divested shares belong to foreign shareholders of VALE, Vale Canada Limited and Sumitomo Metal Mining. “Both parties have been certain about divesting their portions,” she reaffirmed during the Signing of Investment Agreement of the Bahodopi Block Project yesterday (6/9) in Jakarta.
As of now, INCO’s shareholders still consist of Vale Canada of 43.79%, MIND ID or Inalum of 20%, Sumitomo Metal Mining of 15.03%, and the public of 21.18%. This divestment must take place after there are negotiation with the government regarding the status change from concession contract of work to a Special Mining Business License. INCO’s contract of work is indeed scheduled to end on December 28, 2025.
Eddy further stated that both foreign controlling shareholders of VALE have been willing to oblige to divestment obligations ordered by the government as prerequisites of the concession status change. VALE’s mines are currently located in South, Central, and Southeast Sulawesi, with a total area of 118,000 hectares. (AM/ZH)