JAKARTA (RambuEnergy.com) – PT Vale Indonesia Tbk, a nickel miner, said it is ready to divest 20% of its shares to the national parties as required by the prevailing regulations. The realization of the plan is pending on the direction of the government.
President Director of Vale Indonesia Nico Kanter said the divestment will be carried out by Oct. 14, 2019, or 5 years after the issuance of the Government Regulation No 77/2014 on Mineral and Coal business.
“We will certainly realize (divest) the plan this year. We are still waiting for the direction of the government, whether the government is interested or other parties acting on behalf of the government,” Kanter was quoted by Bisnis Indonesia as saying.
He said should the government declined to execute its right, Vale may divest the 20% shares to the public through the capital market.
He noted his company has notified the Energy and Mineral Resources Ministry on Nov. 29, 2018, over the divestment plan.
Vale has amended its mining contractor Contract of Work (CoW) with the Indonesian government on Oct. 17,2 014. The amendment encompassed reduction of the mining area, an increase of royalty paid to the government, an extension of operational lifetime and divestment.
As for divestment, Vale is obliged to divest up to 40% of its shares, on condition that the company built smelting plan domestically, which Vale has done. Otherwise, it has to divest up to 51% of the company’s shares. (*)