DPR asks RI to become control holder of mines Vale News – 1 hour ago

Jakarta, CNBC Indonesia – Member of Commission VII DPR RI, Mulyanto encouraged MIND ID to become the operational and financial controller at PT Vale Indonesia Tbk (INCO). This follows the planned acquisition of PT Vale Indonesia Tbk (INCO) shares by the BUMN Tambang MIND ID Holding for 14%.

“Yes, our final conclusion with the Ministry of Energy and Mineral Resources is that first we ask that MIND ID be the operational and financial controlling shareholder,” said Mulyanto on CNBC Indonesia’s Mining Zone program, quoted Friday (1/12/2023).

Apart from that, he also hopes that PT Vale Indonesia’s various assets and nickel reserves can be recorded in the books of the Unitary State of the Republic of Indonesia. Considering that so far it is still registered abroad.

“We want to note that. The discussion is that these two things are important and can only be implemented if the Indonesian government or MIND ID becomes the majority shareholder,” he said.

Previously, Deputy Chairman of Commission VII DPR RI, Eddy Soeparno, said that with the increase in MIND ID shares by 14%, in total the new mining holding held 34% share ownership in INCO. This means that MIND ID is not the majority holder.

“The majority is 50% plus 1% and if we talk about absolute shareholders, that is at least 66.6%. So if it is absolute, there is much more that can be done,” said Eddy to CNBC Indonesia, Friday (24/11/2023).

For this reason, Eddy believes that with the increase in MIND ID’s shares in INCO to 34%, he is pessimistic that this mining holding will be able to control operations, finances and human resource recruitment.

“Everything has to be looked at again at the cooperation agreement between shareholders. If in the shareholder cooperation agreement the shareholder agreement is then changed and it is agreed that certain controls are transferred to MIND ID, of course it can be implemented, but again it can be done b2b commercially,” said Eddy.

As is known, Indonesia’s share ownership in INCO via MIND ID is currently only 20%, and around 21.18% is spread across the Indonesian stock market. This means that if the additional shares are only 14%, then MIND ID will own 34% of Vale’s shares.

Meanwhile, the majority of Vale’s shares are currently held by Vale Canada Limited (VCL) with a composition of 43.79% shares, then Sumitomo Metal Mining Co. Ltd (SMM) of 15.03%.

However, it is still uncertain whose shares will be reduced, whether only those belonging to VCL or together with shares belonging to Sumitomo Metal Mining Co Ltd (SMM).

[Gambas:Video CNBC]

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