Timah, local firms make official request to operate ex-Koba Tin concession

A consortium comprising of IDX-listed tin giant PT Timah, and three local governments-owned companies has made an official request to the Ministry of Energy and Mineral Resources (MEMR) to operate tin concessions in Bangka Belitung previously owned by PT Koba Tin, Investor Daily reported on Monday.

Timah President Director Sukrisno said that his company signed on January 18 with three companies respectively owned by the local provincial administration of Bangka Belitung, regency administrations of Bangka Tengah, and Bangka Selatan to form a consortium. The four then made the official request to the ministry to operate the tin concession about a week ago, he added.

Sukrisno, however, said that the four firms have yet to decide on each share in the consortium, pending the completion of the necessary bylaws in each region.

The government decided in September of last year not to extend the contract of Koba Tin after 40 years of operating the more than 41,000 hectares tin concessions located in Bangka Tengah and Bangka Selatan regencies. Koba Tin is controlled by Malaysia?s Smelting Corp Bhd, with Timah having a 25 percent stake.

The government then gave Timah to temporarily manage the ex-Koba Tin concession, but bars the company from making any production activity.

Thabrani Alwie, an expert start at MEMR, said that the ministry has yet to receive any official request from Timah or local-government owned companies to run the ex-Koba Tin side.

He also said that Koba Tin has yet to completely pay severance compensation to its workers totaling about Rp 40 billion. The government hopes that the compensation would be completely paid by end of this month, to be taken from proceeds raised from the sale of remaining tin concentrates to Timah. (*)