A nickel miner, PT Vale Indonesia Tbk (IDX: INCO), preparing funds of US$152 million to execute furnace and other projects in this year - Photo by the Company

JAKARTA (TheInsiderStories) – A miner, PT Vale Indonesia Tbk (IDX: INCO) plans to divest shares through a scheme pre-emptive rights to the State-Owned Enterprises (SOEs), said the official government last weekend.

According to SOE’s deputy minister Fajar Harry Sampurno, the plan has been submitted since the minerals producer sent a letter to the government through the Ministry of Energy and Mineral Resources on last December. In the letter, Vale requested that Indonesian SOEs buy the company’ shares.

However, INCO’ President Director Nicolas Kanter has not explained in detail on the plan. He only explained that the divestment step would be doing by the company as a step to comply with existing regulations.

He said, the government has confirmed the truth of the discourse and that the company had sent a letter to the government for the divestment step. Sampurno stated, “Vale has sent a letter to us. We appreciate and are interested, of course.”

As we know, Vale’s Contract of Work will expire in October 2019. Because of the divestment obligation, the miner has indeed made several steps to bid for SOEs through rights issue scheme. INCO is also obliged to offer to the government first.

This is in accordance with the regulation of the Mining Law Number 4 of Year 2009 concerning Oil, Energy and Coal Mining. With that, the steps taken by Vale are currently made to fulfill the obligation to divest.

However, the Government has not given any assignments to SOEs related to the divestment and still reviews and study the submission letter from Vale first.

PT Aneka Tambang Tbk (IDX: ANTM) CEO Arie Prabowo Ariotedjo said that the company not interested in absorbing Vale’ share divestment cause currently they are focusing on completing the downstream project.

“We have a priority to accelerate downstream development. We have a lot of resources, but if the down-streaming is not done, why not? For now we are not yet there,” he noted.

Meanwhile, PT Indonesia Asahan Aluminium (Inalum) also still talkative about the divestment of Vale’ shares. The CEO Budi Gunadi Sadikin only stated that Inalum has not yet received an assignment from the government to participate in the divestment process or even to study it.

“There has not been directives from the government. Later we will see if there are directives, like what the directives are,” he said.

Written by Daniel Deha, Email: theinsiderstories@gmail.com