Koba Tin allowed to resume operations: Report

Bangka-based tin producer PT Koba Tin has been allowed by the police to resume operations after being forced to suspend the operation on charges of taking tin ore from illegal miners.

"The police have approved our request to resume operations. We received the letter this morning," Patria Nusa, a Koba Tin spokesman was quoted by Reuters as saying.

The company could also resume exports as soon as it started producing refined tin, he said, adding that the company still had about 130 tons of refined tin sealed by police in connection with the probe into illegal mining.

Djuhandani Raharjopuro, the Central Bangka police chief, confirmed Koba Tin had been allowed to resume operations but on condition that Kamarddin M.D., the firm's managing director, responded to a summons over alleged illegal mining within 10 days.

"If Kamarddin is not willing to cooperate with the police, we will shut the smelter again," he said.

Koba Tin expects to produce 15,000 tons of refined tin this year, accounting for about 4 percent of global output.

In January, police closed down Koba Tin's warehouse and smelting operation over allegations it had used tin mined from protected forests and arrested 12 suspects, including five Koba Tin officials, a month later.

Malaysia Smelting Corp. Bhd owns 75 percent of Koba Tin, while the rest is owned by state-owned tin miner PT Timah (*)