Vale Indonesia Management Gives Answer To Block Voting Agreement

Illustration (Photo: Doc. Antara)

JAKARTA - MIND ID's President Director in a Hearing Meeting with Commission VII on Tuesday, August 29, said Vale Canada Ltd and Sumitomo Metal Mining (SMM) had a block voting agreement that was deemed to affect business development after Vale's share divestment.

Responding to this, the management of PT Vale Indonesia through the Head of Communications of PT Vale Indonesia Tbk (INCO) Bayu Aji confirmed the block voting agreement.

According to him, the agreement is related to the shareholder agreement which was signed in 2020 in the context of all divestment transactions.

It is known that the final terms and conditions of the 2020 divestment transactions have been completed in the Agreement and include, among other things, the purchase of a secondary of 20 percent of PT Vale's shares by MIND ID, and financial and operational control of PT Vale by VCL, as well as financial and production consolidation in its financial statements.

"PT Vale is not a party to this agreement and all changes to the agreement are under the authority of the shareholders," said Bayu, quoted on Saturday, September 2.

He added, if from time to time, PT Vale asked for support from management and technical services from VCL and Vale Technology Development (Canada) Limited (VTDCL) based on the Negotiated Management Services and Technical Services Agreement.

For that, he said, this fee is not a fixed payment from INCO to the company Vale.

This fee is payment for services provided in a similar way to payments made as well as for other external vendors.

"As an open company, all payments to affiliated parties made by the Company must meet the requirements of the applicable laws and regulations," explained Bayu.

The terms and conditions in these agreements reflect the reasonableness and ease of business (arms length) as emphasized by the opinion of fairness in accordance with applicable laws and regulations.

He emphasized that as an open company, PT Vale also continues to prioritize transparency.

"The amount paid by PT Vale to VCL and VTDCL was disclosed to the public in PT Vale's financial statements because PT Vale consistently reported its financial statements to the Government, OJK, Stock Exchange, and the public," concluded Bayu.

It is known that in 2022, the total payment to VCL and VTDCL is approximately 1 percent of PT Vale's net profit.