Malaysia?s Bina Puri scouts for tin mines in Bangka: Report
Saturday, October 9 2004 - 01:20 AM WIB
In reply to a query from Bursa Malaysia over a report in the Chinese press last week, Bina Puri said it was exploring business opportunities in tin mining in Indonesia.
The company said it was at the preliminary stage of a tin mining survey there. A decision would only be made after completion of a technical survey and commercial feasibility study, it added.
According to the Star Online, Bina Puri has started negotiating for mining rights from PT Sangkala Duta Segara Indah, an Indonesian company that holds a mining concession on Bangka Island. A survey made by an Indonesian agency shows there is an ample amount of tin deposits in the concession area.
Bina Puri?s partners are now making an independent evaluation of the deposits. If that pans out, Bina Puri is expected to be offered a stake of 51 percent in the operating company, according to the sources.
The sources, who are familiar with bids for the Sangkala concession, say that based on the Indonesian agency's survey report, it is possible for Bina Puri to obtain a profit of RM20mil (US$5.26) a year from the mining operations, after allowing for a royalty of 15 percent of sales for the concession owner.
Meanwhile, it is expected that as soon as the independent survey is completed and it verifies the agency's report, Bina Puri will sign a contract for the mining rights. (*)