JAKARTA. The Indonesian government, through state-owned holding of mining, MIND ID, has signed a sales and purchase agreement (SPA) regarding the 14% divestment of PT Vale Indonesia Tbk (INCO) last Monday (26/2).

The SPA signing is a follow-up action after Heads of Agreement that was agreed in November 2023. With this corporate action, Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM) had divested their portions to MIND ID in order to obtain the contract extension in the form of Special Mining Business License (IUPK).

“With the SPA being signed in order to proceed with the divestment, the company is one step closer to secure the contract extension in the form of IUPK, which will grant legal certainty for activities and business development in the future,” Febriany Eddy, President Director and CEO of INCO, mentioned in the official statement.

After securing IUPK in the near future, INCO will focus on carrying out expansion project in Pomalaa, Bahodopi, and Sorowako. The total investment spent on these three projects clocks up to USD 9 billion, including funding support from the company’s business partners.

Meanwhile, Kartika Wirjoatmodjo, Vice Minister of State-Owned Enterprise (SOEs), famously known as Tiko, said that MIND ID will install 5 representatives from Indonesian government into the management of INCO. The plan is related to exclusive rights of MIND ID holders as the major shareholder of the company, owning 34% of total shares.

Tiko mentioned that these 5 representatives consist of 3 commissioners and 2 directors. “We have agreed that VCL will name the operational director and the director that will be responsible for ESG management,” added Tiko. (KR/ZH)