MSC seeks extension for Bangka tin mine

Malaysian Smelting Corp. Bhd (MSC) has filed for contract extension of its tin mining unit PT Koba Tin for another 10 years to 2023, Malaysian media reported on Monday, quoting CEO Datuk Seri Mohd Ajib Anuar. Koba Tin?s concession right will expire in March 2013.

The company would also sell-down its 75% stake in Koba Tin by half to 37.5% to Optima Synergy Resources Ltd, which is controlled by Indonesian national. The remaining 25% stake at Koba Tin, which mine is located in Bangka Belitung province, is held by IDX-listed state tin miner PT Timah Tbk.

Ajib said that Koba Tin will return to the black in the second half of this year, driven by a reduction in production costs, equity restructuring and higher production. "It will generate bigger opportunities in the form of expanded production," he told a press conference after the company's briefing on the 2011 financial results.

MSC plans to work with small scale miners in Indonesia, as well as execute more organised and proper mining practices there. "By doing so, we hope Koba Tin can expand production and eventually reduce costs," Mohd Ajib said. (*)