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MIND ID to ramp up Vale divestiture, citing unmet commitments
MIND ID is looking at the possibility of pursuing relinquishment over unmet contractual commitments as a means to accelerate the divestiture of Vale Indonesia amid stalled negotiations.
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A worker processes nickel ore on Aug. 1, 2019 at a smelter in Sorowako, South Sulawesi. (Shutterstock/Kaisarmuda)
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tate-owned mining holding company MIND ID says it is determined to take control of nickel mining company PT Vale Indonesia on the basis of the firm’s unfulfilled investment commitment, regardless of currently stalled negotiations.
MIND ID president director Hendi Prio Santoso said on Tuesday that Vale Indonesia could be mandated to relinquish its working area because it had failed to fulfill the investment commitments stipulated in a contract of work signed in 2014.
“If [Vale’s] development commitments are not fulfilled in accordance with the contract of work, it is necessary to [process] relinquishment in the areas related to the projects,” he told lawmakers of House Commission VII, which oversees energy and mineral resources.
Hendi added that President Joko “Jokowi” Widodo had asked his aides in a meeting on Feb. 5 for MIND ID to take over 51 percent of Vale Indonesia’s shares, excluding public shares.
In the months since, the government has been negotiating the divestiture with the nickel miner’s shareholders, but has made little progress.
Vale Indonesia shareholders are reportedly haggling over who will have operational control of the firm and how to consolidate their financial statements after the divestiture, according to Energy and Mineral Resources Ministry.
The firm did not immediately respond to The Jakarta Post’s request for comment.
