Koba Tin's fate will be announced on Tuesday

By Tri Subhki R

Expert Staff of Minister of Energy and Mineral Resource Thabrani Alwi said that the government is expected to announce its decision on the fate of tin producer PT Koba Tin?s contract of work on Tuesday.

"We will announce the government decision on Tuesday," he said on the sidelines of the 3rd Annual Business Meeting of Coal Producers and Buyers in Legian, Bali on Monday.

Malaysia Smelting Corp Bhd (MSC) owns 75 percent of Koba Tin's shares. Koba Tin?s contract of work to mine for tin in Bangka Island already expired on March 31, 2013. But the government extended the contract for three months to evaluate MSC?s request for a contract extension of another 10 years amid growing pressure at home for the contract not to be extended.

MSC reportedly plans to seek for international arbitration if Indonesian government refused to extend the contract to 2023. MSC said the company is entitled to a second of 10 years extension. "We welcome the MSC to seek international arbitrage, we are ready to deal with it," Thabrani said.

Editing by Reiner Simanjuntak