Bangka Belitung agrees to have 60% stake in Koba Tin

The provincial administration of Bangka Belitung has finally agreed to have a 60 percent stake in PT Koba Tin, lower than the initial demand of 80 percent, with the remaining 40 percent goes to IDX-listed tin giant PT Timah Tbk, reports said on Tuesday.

Babel Governor Rustam Effendi said that the share distribution agreement will be officially announced on May 23.

The two sides will take over Koba Tin, which owns over 41,000 hectares tin concessions in Bangka Belitung Province, from Malaysian Smelting Corp after the latter?s 30-year contract expired in September of last year. The government did not extend the contract of Malaysian Smelting after Koba Tin suffered financial losses during the past three years, according to an independent audit. Timah previously held a 25 percent stake in Koba Tin, while Malaysian Smelting 75 percent stake. (*)