MEMR hopes local firm to manage ex-Koba Tin mine

After state-controlled tin giant PT Timah Tbk backed down from its plan to manage the former tin concession of PT Koba Tin in Bangka Belitung province, the Ministry of Energy and Mineral Resources (MEMR) wants local government-owned company (also known as BUMD) to takeover the mine, Kontan reported on Thursday.

The paper quoted Director General of Coal and Mineral at the ministry, Bambang Gatot Ariyono as saying that the central government is waiting for the Bangka Belitung provincial government to propose the BUMD. If the local administration fails to assign a BUMD, the central government will offer the former Koba Tin concession to private investors.

Bambang added that it remains unclear as to when the 44,344.26-hectare concession will resume production activity.

Meanwhile, a source told Kontan that the Bangka Belitung administration has already prepared a BUMD to takeover the ex-Koba Tin mine, which will partner with a private investor. ?There?s a private investor behind it (the BUMD). We surely know who he is, a well-connected (businessman), it?s unethical to disclose his name,? the source said. (*)