Minister of Industry supports the cancellation of Koba Tin?s contract

Minister of Industry Fahmi Idris has joined the chorus with the central government and provincial administration, supporting the cancellation of tin mining company PT Koba Tin?s contract of work, Koran Tempo reported Wednesday.

According to Fahmi, the cancellation of Koba Tin?s contract of work will not have any legal implications on the government because the government has found out that the company, which operates on Bangka Island, had violated the government regulations.

?The government had found a lot of evidences of these violations,? Fahmi said in Jakarta on Tuesday.

Earlier National Police chief Gen. Sutanto had also asked the government to cancel the contract becasue Koba Tin which allegedly violated the contract of work.

Actually, Koba Tin?s contract was supposed to expire in 2003 but Minister of Energy and Mineral Resources Purnomo Yusgiantoro extended the contract until 2013. Moreover, the government gave permission to Koba Tin to handle illegal tin from the illegal miners.

Purnomo said he will check the license given to the Koba Tin which led the company to be engaged in illegal tin activities.

?Later, I will check it (illegal tin activity), including the contract of work,? Purnomo said

Koba Tin, 75 percent owned by Malaysia Smelting Corp and 25 percent by state-owned tin miner PT Timah. (*)