maaxx.ca

Wednesday August 30, 2023 – 07:46 WIB

Jakarta – The Hearing Meeting (RDP) between Commission VII of the DPR RI and the Directorate General of Minerals and Coal of the Ministry of Energy, Mineral Resources and Mines BUMN Holding MIND ID, revealed the strategy between Vale Canada and Sumitomo to continue to monopolize decisions at Vale Indonesia after completion of the divestment.

House of Representatives Committee VII Deputy Chairman Bambang Haryadi admitted that his party suspected there were attempts between Vale Canada and Sumitomo to continue to monopolize Vale Indonesia’s decisions through a shareholding plan between the two.

In response, MIND ID Senior Manager Hendi Prio Santoso disclosed the existence of an agreement between Vale Canada Limited and Sumitomo Metal Mining (SMM). The agreement is block vote agreementwhich required Sumitomo to follow all of Vale Canada’s decisions.

“We note that in the shareholding there is another agreement in the form of block vote agreement binding agreement between Vale SA and Sumitomo Metal,” Hendi said in a RDP with Commission VII at the Indonesian Parliament, Senayan, Jakarta on Tuesday, August 29, 2023.

“So that Vale Canada can easily consolidate and force Sumitomo to follow whatever decision Vale Canada will determine,” he said.

Therefore, Hendi pointed out that MIND ID would modify the agreement, as a condition offered this time in the process of selling Vale shares.

“As a condition we propose to be able to carry out a follow-on investment program, the existing shareholders’ agreement must first be modified, if not dismantled,” Hendi said.

According to Hendi, this is very important, in order to dismantle the monopolistic strategy that Vale Canada is trying to put in place with Sumitomo through an agreement. block the vote agreement. In which, the agreement obliges Sumitomo to obey and follow any decision that Vale Canada makes later.

“Because otherwise, the other shareholders are already bound block vote agreement. So in order to be able to participate in further investment, you have to dismantle first, and modify first,” he said.