MSC hopes police investigation will end in Q1 2007

Malaysia Smelting Corp. (MSC) said Wednesday that it hoped the police investigation in its Indonesian subsidiary tin producer PT Koba Tin operations will be resolved within the first quarter 2007.

“Normal mining operations and shipments under a more regulated Indonesian tin industry environment could be resumed as soon as possible,” MSC said in statement to Bursa Malaysia.

Earlier, Koba Tin’s delivery and shipment was suspended as a result of the current Indonesian police investigation on Koba Tin as part of the Indonesian Government’s efforts to regulate the country’s tin mining.

MSC’s earnings for first quarter 2007 have been adversely affected by the closure of all small-scale mining operations within Koba Tin’s Contract of Work (CoW) area

MSC owns a 75 persent stake in Koba Tin, the remaining hold by state-owned tin miner PT Timah, with an annual output of about 24,000 metric tons.

Koba Tin operates under a CoW issued by the Indonesian Central Government and covering a total mining acreage of about 41,000 ha. The CoW has enough reserves to last until its expiry date at the end of 2013. (denny)