Govt acknowledges giving permit to Koba Tin to buy illegal tin

The government acknowledged having given a permit to tin companies, PT Koba Tin and state tin miner PT Timah, to buy tin from illegal miners in Bangka Belitung, saying that the move has been taken to help find a short-term solution to illegal tin mining problem.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta Friday that comprehensive consideration has been taken before making the decision. ?It was not only based on one aspect. (It?s true) that legally speaking, buying (tin) from illegal miners is not allowed,? Purnomo was quoted by Koran Tempo on Friday as saying.

Purnomo said that when the government gave the permit, the amount of tin stockpiling resulting from the police raids on the illegal mining activities continued to increase. The increasing amount of tin piled up has prompted the government to give the permit to PT Koba Tin and PT Timah to buy it (the tin), he said.

According to Purnomo, mining is a labor-intensive sector and therefore, if none bought the stockpile, then the miners, who were mostly lower-income bracket people, will become the victims. ?We have already coordinated with Coordinating Minister for Politics, Law and Security,? said Purnomo.

The CoW held by Koba Tin should have expired in 2003 but Minister of Energy and Mineral Resources extended the contract until 2013.

Meanwhile, PT Timah?s president director Thobrani Alwi said that the purchase of the tin from illegal miners started in 2001. ?But in early 2007, measures to discipline illegal mining activities will be taken and (we) will no longer buy tin from illegal miners,? he said.

Earlier, Chief of the Indonesian Police Gen. Sutanto urged the government to cancel the contract of work (CoW) given to PT Koba Tin, saying that its CoW had already expired.

Sutanto said in his letter that Koba Tin was an alleged mastermind of the mining-related disturbance in Bangka Belitung and asked the government to revoke its agreement with Koba Tin on the purchase of tin ores from unconventional (illegal) miners because the agreement opposed the Law No. 11, year 1967 on the Basic Rules and Regulations on Mining, the Government Regulation No. 32, Year 1969 on the Implementation of Law No. 11, Year 1967 and the Regulations on CoW between Koba Tin and the government.

Koba Tin, 75 percent owned by Malaysia Smelting Corp and 25 percent by state-owned tin miner PT Timah. (*)