Sunday, 23rd November 2014

Govt not to extend contract of PT Koba Tin

Kamis, 12 Juli 2012 20:41 WIB | 8.683 Views
Jakarta (ANTARA News) - The government has decided not to extend the contract of PT Koba Tin for tin mining in Bangka Belitung.

"We have already mastered the tin technology. So, it need not be extended," the director general of minerals and coal of the ministry of energy and mineral resources, Thamrin Sihite, said here on Thursday.

Regarding the appointment of two new commissioners in Koba Tin, he said he did not know yet about it. "I have not been informed about it," he added.

The appointment of the two commissioners are reported to smooth the process of extension of the company`s working contract.

Koba Tin is a tin ore mining and processing company in Bangka Belitung province in Sumatra.

At present 25 percent of the company`s shares is owned by PT Timah Tbk. and the rest 75 percent by Malaysia Smelting Corporation Berhad.

The company`s working contract is expected to expire in April 2013 after being extended for 10 years since 2003.

In April 2012 Koba Tin that have 41,510 hectares of mining concessionaire applied for an extension of the contract.

Based on data from the ministry of energy and mineral resources the company`s production has continued to drop after reaching its peak at 24,000 tons a year. In 2012 its production was recorded under 10,000 tons. (*)