Indonesian President Attends Signing of PT Vale Indonesia Tbk Main Divestment Agreement in San Francisco
San Francisco, 17 November 2023 – Indonesian President Joko Widodo attends the signing of the Heads of Agreements: PTVI Divestment Commitment (HoA) by the President Director of PT Mineral Industri Indonesia (MIND ID), the Holding State-Owned Enterprise for the Mining Industry; CEO of Vale Canada Limited (VCL); Senior Managing Executive Officer of Sumitomo Metal Mining Co. Ltd. (SMM); and CEO of PT Vale Indonesia Tbk. (PTVI); witnessed by the Coordinating Minister for the Economy and Vice Minister of State Enterprises, in San Francisco, on Friday, 17 November 2023, local time.
The HoA (Heads of Agreement) is the initial step to fulfill the divestment commitment of PTVI in the context of complying with the conversion requirement of the Special Mining Business License (IUPK), considering that PTVI’s Working Contract (KK) expires at the end of 2025.
In line with the aspirations of Shareholders, it is hoped that with the signing of the HoA, MIND ID will become the biggest shareholder of PTVI, with ownership of 34%, and have an important role of managing PTVI in the future.
MIND ID President Director, Hendi Prio Santoso, also disclosed that MIND ID and VCL will jointly control PTVI. “By becoming the biggest Shareholder of PT Vale Indonesia Tbk, MIND ID, and VCL will have more joint control in the operations of the Company and also in managing and developing the Company in the future,” said Hendi.
It is hoped that with the joint management structure of PTVI, MIND ID, and other shareholders can work together more closely, based on the principles of Good Governance, to support the future development of the Company, as well as support the program of the Indonesian Government in optimizing the use of national nickel reserves and resources, through the Downstreaming Program, which is expected to raise the added value of the nickel value chain in the domestic market.
“This will strengthen the business line of MIND ID and efforts to optimize the use of the nickel reserves and downstreaming efforts, which the Indonesian Government is continuously campaigning.
After the signing of the HoA, MIND ID and other main shareholders will still continue the discussions in order to decide on the detailed transaction mechanism, as the basis for the implementation of the divestment process, which is expected to be completed in 2024. After the divestment process is completed, MIND ID, as a state enterprise, will endeavor to provide an optimal positive impact in encouraging the Indonesian mining sector to be more advanced.
Vice Minister of State Enterprise, Kartika Wirjoatmodjo, hopes that both PTVI main shareholders will be able to collaborate continuously to develop maximal potential and added value for Indonesia.
“MIND ID and Vale Canada will certainly collaborate to develop the potential of PT Vale Indonesia in the future,” said Tiko, the nickname for Kartika.
MIND ID continues to be committed to operating in line with the principles of good mining practices and putting forward the spirit of sustainability. This is in line with the Noble Purpose of MIND ID, We Explore Natural Resources for Civilization, Prosperity and a Brighter Future.