PT Vale Indonesia is dedicated to completing the divestment of the company's shares by June’20 as this has missed the original target.
Bernardus Irmanto, CFO, Vale Indonesia explained: “The joint management with partners, namely Vale Canada Limited and Sumitomo Metal Mining Co. Ltd. stated that they had reached an agreement with PT Indonesia Asahan Aluminum (Persero) to extend the signing date of the definitive agreement until the end of June 2020. This discussion was delayed another because of the Covid-19 pandemic which impeded the discussion process between the two parties.”
On 31st May’20 Irmanto said: "All parties remain committed to signing a definitive agreement, however, the current pandemic has presented challenges that have caused delays.”
This extension gives the parties more time to finalize various acquisition agreement agreements. Irmanto asserted that even though he resigned, the terms and conditions of the divestment and agreements that had been previously established would not change.
"Except for the date of signing the definitive agreement, the terms and conditions of the Head of the Agreement remain in full and effective effect," said Irmanto.
Vale Canada Limited (VCL) and Sumitomo Metal Mining Co. Ltd (SMM), as well as Inalum, have agreed to extend the deadline for signing definitive agreements related to Vale's divestment obligations until the end of the first quarter of 2020.
Divestment of 20% of Vale Indonesia's shares is an obligation of the 2014 Contract of Work (KK) amendment between Vale and the government which must be carried out five years after the amendment. Vale Indonesia's CoW will expire in 2025 and can be changed or extended to a Special Mining Business License (IUPK) in accordance with statutory regulations.
Vale Indonesia's current shareholders include Vale Canada Limited (VCL) of 58.73%, Sumitomo Metal Mining Co. Ltd. (SMM) at 20.09% and the public at 20.49%.
On the other hand, the government has appointed PT Indonesia Asahan Aluminum (Inalum) as the mining industry holding which currently has a new identity as MIND ID, to take Vale Indonesia's divestment shares.
source https://www.alcircle.com/news/pt-indonesia-asahan-aluminum-to-acquire-vale-indonesia-s-divestment-shares-55948
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