MIND ID Boss Says There is a Block Voting Agreement Vale Canada and Sumitomo Metal

JAKARTA - MIND ID Main Director Hendi Prio Santoso revealed that in the share ownership structure of PT Vale Indonesia Tbk, there is an agreement between Vale Canada Limited and Sumitomo Metal Mining (SMM).

"We note that the share ownership structure also has another agreement in the form of a binding block voting agreement between Vale SE and Sumitomo Metal," he said in a hearing with Commission VII of Indonesian House of Representatives (DPR RI), Tuesday, August 29.

With this agreement, Hendi said that Vale Canada would easily consolidate and force Sumitomo to follow whatever decision was determined by Vale Canada.

This statement was also responded to by Bambang Haryadi who acted as chairman of the meeting. Bambang asked Hendi to further explain the agreement.

Bambang admitted that from the start he was suspicious of the agreement.

"This is what we suspect. That's why actually they want to let go even more so they still have a monopoly," said Bambang.

Hendi also confirmed this statement. For this reason, he said, his party had prepared an amendment to the agreement as a condition for further investment.

"That's right. So indeed, as a condition that we propose to be able to carry out a follow-up investment program, the existing shareholder agreement must be amended. Dismantle it first," continued Hendi.

If it is not amended, continued Hendi, he is worried that there will already be a block voting agreement between the other shareholders.

"So we are indeed proposing it as a fundamental requirement when we are going to take part in further investments. This must be dismantled first. It must be amended first," concluded Hendi.