Indonesian Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif announced that the government officially extended the work agreement with PT Vale Indonesia Tbk. (IDX: INCO) in the form of a special mining business permit (IUPK).

Arifin explained that the extended license will be valid for the next 20 years after the current contract expires in 2025. “As requested, [it will be for] approximately 20 years. MIND ID owns the biggest [share] there,” he said at the ESDM Ministry office in Central Jakarta, on Friday, March 22.

He revealed that the Investment Ministry would soon issue the official document on the IUPK based on the recommendations of the ESDM Ministry. “God willing, we will send the IUPK today as per our recommendation.”

Bayu Ayi, PT Vale Indonesia’s Head of Communication, has not yet responded to Tempo’s request for confirmation regarding the IUPK.

On Monday, February 26, an agreement was finally reached for the divestment of Vale Indonesia’s shares. Two of Vale Indonesia’s shareholders, Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM), agreed to divest 14 percent of their shares proportionally to MIND ID, the holding for SOEs engaged in the mining sector, for Rp3,050 per share.

Source: en.tempo.co