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Inalum eyes 20 percent stake in Vale Indonesia
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Inalum president director Budi Gunadi Sadikin speaks to the press during a briefing at his office in South Jakarta on July 17, 2018. (JP/Damar Harsanto)
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tate mining holding company PT Indonesia Asahan Aluminium (Inalum) is prepared to buy a 20 percent stake in publicly listed nickel miner PT Vale Indonesia (INCO) as part of the latter’s divestment obligation.
Inalum president director Budi Gunadi Sadikin said Monday that his firm was interested in and ready to acquire a stake in Vale, but only if the government appointed it to do so.
“We want [a 20 percent stake of Vale], but only if we are appointed by the government. If we already have the assignment, then we are more than ready [to take it],” he said on the sidelines of a House of Representatives hearing.
He added that the firm had discussed the possibility of acquiring a 20 percent stake in Vale with both the government and Vale itself.
Inalum said it estimated a 20 percent stake in Vale at a value of less than US$1.5 billion.
When asked about the source of funding to acquire the 20 percent stake in Vale, Budi pointed to two options, namely a bond issuance or a bank loan.
“If we have enough internal cash, we will do it with our own money. However, if we don’t have it, then we will take a loan,” he said.
