Sunday, December 3, 2023

MIND ID demand Vale Canada and Sumitomo to terminate block voting agreement before proceeding with divestment

Reading Time: 2 minutes
Mahinda Arkyasa




PT Mineral Industri Indonesia (MIND ID) is urging Vale Canada Limited (VCL) and Sumitomo Metal Mining (SMM) to terminate their block voting agreement before finalizing the continued divestment of PT Vale Indonesia shares.

This ongoing divestment is a prerequisite for the extension of their mining contract of work (CoW), which is set to expire on December 28, 2025.

Hendi Prio Santoso, CEO of MIND ID, explained that the block voting agreement allows VCL to consolidate with SMM. This arrangement makes SMM follow VCL’s decisions in determining Vale’s operational plans.

“The share ownership structure includes another agreement, a block voting agreement, which empowers Sumitomo to adhere to whatever Vale development commitments VCL makes,” Hendi stated during a hearing with the Indonesian House of Representatives Commission VII on Tuesday, August 29.

Hendi added that amending the block voting agreement between VCL and SMM is a condition set by MIND ID to proceed with the additional sale of Vale Indonesia shares to the state-owned Mining Industry Holding.

Vale has agreed to divest an additional 14% of shares to local entities as a requirement for extending the mining CoW, as stipulated in Article 112 of Law No. 3 of 2020 concerning Mineral and Coal Mining.

According to data from Minerba One Data Indonesia (MODI), the current shareholders of Vale Indonesia include Vale Canada Limited (43.79%), Sumitomo Metal Mining (15.03%), MIND ID (20%), Vale Japan Limited (0.55%), Sumitomo Corporation (0.14%), and the public (20.49%).

Preventing combining of shares

The additional 14% stake would elevate MIND ID’s majority ownership of Vale shares to 34%. Meanwhile, VCL’s share would decrease to 33.29%, and SMM’s to 11.53%. Vale Japan Limited’s share would become 0.54%, and the public’s share would be 20.64%.

However, if the block voting agreement between VCL and SMM remains in effect, their combined share consolidation would reach 44.82%, surpassing MIND ID’s ownership of Vale shares.

“The block voting agreement must be dismantled before this divestment process proceeds,” Hendi emphasized.

Furthermore, Hendi noted that President Joko Widodo, during a cabinet limited meeting on February 5, 2023, decreed that MIND ID should increase its ownership of Vale shares to 51%, excluding public shares. This calculation would establish MIND ID as the majority shareholder of Vale, even if VCL and SMM consolidate their shares.

Mahinda Arkyasa






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The World Trade Organization’s (WTO) dispute settlement body has agreed to form a panel to review the import duties imposed by the European Union (EU) on biodiesel imports from Indonesia.
The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), is exploring collaboration with South Korea regarding the utilization of Carbon Capture and Storage/Carbon Capture, Utilization, and Storage (CCS/CCUS) technology in the oil and gas industry.
President Joko ‘Widodo’ Widodo expressed pride as Bahasa Indonesia is officially acknowledged for use in the UNESCO General Assembly. The decision was made during the 42nd General Assembly of UNESCO in Paris, France, on November 20, 2023.
Indonesia and Germany strengthen their collaboration in advancing green transportation systems, supporting “The Green Infrastructure Initiative.” The nations, with a 60-year diplomatic relationship, focus on reducing carbon emissions and combating climate change.
Presidents Joko Widodo and Joe Biden elevate Indonesia-U.S. relations to a comprehensive strategic partnership alongside collaboration between Pertamina with ExxonMobil and Chevron in Washington DC on November 13, 2023.
The Organization of Islamic Cooperation (OIC) and the Arab League have granted Indonesia a special mandate, along with other countries, to work towards ending the conflict in Gaza. This mandate was issued following an extraordinary meeting of OIC leaders to discuss efforts to halt the war in the Gaza Strip, Palestine.