PT Vale Indonesia (IDX: INCO) has postponed a US$90 million upgrade of its Sorowako nickel smelter in South Sulawesi, due to logistical issues caused of the pandemic - Photo by Bilaterals

JAKARTA (TheInsiderStories) – After Canadian Vale SA’ unit, PT Vale Indonesia Tbk (IDX: INCO) has completed the divestment of 20 percent shares, there are four other miner which are required to divest their shares to local entities. Energy and mineral resources ministry’ director Yunus Saefulhak as quoted by local media, the companies must complete the divestment offer process to fulfill 51 percent of Indonesia’ ownership.

The four companies are three gold miner, PT Natarang Mining, PT Ensbury Kalteng Mining, PT Kasongan Bumi Kencana, and diamond producer, PT Galuh Cempaka. He said, the process has been running since last year. Unfortunately, he reluctant to details the maturity and offer limits of each company. “Everything is due,” he said.

Natarang has a divestment obligation of 22 percent. At present, the majority shares of the gold miner are owned by Australia’ Natarang Offshore Pty. Ltd (85 percent) and individual (15 percent). Then, Ensbury must divest 44 percent of the company shares. Singapore’ Ensbury Kalteng Pte., Ltd., hold 94 of the stakes, British’ Ensbury International Ltd. by 4 percent and other shareholders by 2 percent.

While, Kasongan Bumi Kencana which must divest 19 percent of the shares. The company is 45 percent owned by Australia’ Pelsart Kasongan Pty. Ltd., 40 percent owned by Idaman Kasongan Pty. Ltd., and 15 percent by PT Wisma Budi Kerti.

And Galuh Cempaka has obligation to divest 31 percent of the miner shares. The majority of diamond companies are owned by Singapore’ Ashton MMC Pte. Ltd. amounting to 80 percent and 20 percent by PT Aneka Tambang Tbk (IDX: ANTM).

Unfortunately, regarding the details of the maturity and offer limits of each company, Yunus is still reluctant to explain it. “Anyway, everything is due,” he said.

In line with this, the ministry is also in the process of completing technical guidelines regarding the procedures and mechanism of stock valuation. Currently, Saefulhak added, the technical guidelines are almost finished.

Indonesian government hopes the realization of investment in the energy and minerals sector will rise in this year, especially in exploration project. So far, the ministry has obtained exploration commitments up to $2 billion from the miners.

Written by Staff Editor, Email: theinsiderstories@gmail.com