Six foreign-controlled miners in Indonesia to divest shares to meet regulations

Grasberg copper and gold mine, Indonesia. Visual from Freeport-McMoRan Inc website. October 2015

Six foreign-controlled miners operating in Indonesia, including PT Vale Indonesia and a unit of Australia’s Newcrest Mining, intend to divest some of their shares “in the near future” to meet regulations, an Indonesian official said.

According to Indonesian mining rules, foreign-controlled miners are required to gradually start reducing ownership after five years of production. Within 10 years, foreign ownership should be cut to at least 49 percent.

The six companies included nickel miner Vale Indonesia and gold miner PT Nusa Hamahera Mineral, which is 75 percent controlled by Newcrest Mining, Yunus Saefulhak, director of minerals, Energy and Mineral Resources ministry, said late Tuesday.

The others were gold mining companies PT Kasongan Bumi Kencana and PT Ensbury Kalteng Mining, as well as diamond miner PT Galuh Kencana, he added.

Saefulhak did not specify when the companies would start divesting their shares.

Chief Executive of Vale Indonesia Nico Kanter said last month that the company was in talks with the government on its divestment plan and expected to start before October this year.

Officials with Vale in Indonesia and Nusa Halmahera Mining could not immediately be reached for comment.

Brazil’s Vale SA controls nearly 60 percent of Vale Indonesia, while public shareholders hold about 20 percent of the company’s stake.

Gold miner PT Natarang Mining, which is 85 percent controlled by Australia’s Kingrose Mining, had also conveyed its divestment plan to the government, Saefulhak said.

Natarang Mining, Kasongan Bumi Kencana, PT Ensbury Kalteng Mining and PT Galuh Kencana were not reachable by phone.

Also read:

Chinese gold firms pursuing EMR Capital-backed $1.5b Indonesia mine

Rio Tinto mulls exiting Freeport-operated Indonesia mine

Reuters

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.