Govt awaits proposal from Bangka Belitung on ex-Koba Tin concession

The local governments in Bangka Belitung must show their seriousness in developing the former tin mine of PT Koba Tin to be able to win the right over the concession after state controlled tin giant PT Timah Tbk withdrew from the consortium initially assigned to take over the 41,000-hectare mine.

The government in 2013 handed over the tin concession in Bangka Belitung province to a consortium comprising of IDX-listed Timah, and companies owned by the provincial administration, South Bangka regency administration, and Central Bangka regency administration.

But Timah in July submitted a letter to the Ministry of Energy and Mineral Resources on its withdrawal from the consortium. No reasons were given.

Director General of Coal and Mineral Bambang Gatot was quoted by Investor Daily as saying Tuesday that despite the withdrawal of Timah from the consortium, the government would not automatically hand over the ex-Kobatin concession to the companies owned by the local governments in Bangka Belitung.

The local firms must submit proposal to the ministry, consisting of steps they would take in operating the tin concession to show their seriousness. ?We want to know how prepared they are. We don?t want to give the concession (to the local governments), only to see it later being abandoned,? Bambang said. (*)