Timah backs down from ex-Koba Tin mine

IDX-listed tin giant PT Timah Tbk has submitted a letter to the Minister of Energy and Mineral Resources Sudirman Said on its withdrawal from a consortium assigned to manage the former tin concession of PT Koba Tin in Bangka Belitung province, Kontan reported on Monday.

This was disclosed by Timah Corporate Secretary Agung Nugroho, but did not say what the reason was.

The government in the middle of 2013 handed over the former tin concession of Koba Tin to a consortium of Timah and companies owned by local governments as its contract expired and was not extended.

Timah, and three local governments including Bangka Belitung Provicial administration, Central Bangka Regency administration, and South Bangka Regency administration set up a consortium called PT Timah Bemban Babel to manage the mine.

However, the consortium has yet to resume operation at the tin concession due to various undisclosed problems.

Meanwhile, Director General of Coal and Mineral Bambang Gatot Ariyono said that Timah has decided to back down from the former Koba Tin concession on economic reasons.

Minister Sudirman has yet to respond to the Timah withdrawal letter. The Bangka Belitung administration plans to team up with another firm to replace Timah. The minister, however, has said that it should hold a tender to find the replacement for Timah. (*)