Timah, local govt scramble for control of ex-Koba Tin assets

IDX-listed tin giant PT Timah Tbk risks of becoming a non-controlling owner in a planned joint venture company that is set to acquire the former tin assets of PT Koba Tin on Bangka Island as local partner Bangka Belitung provincial administration wants to have a 60 percent stake, Investor Daily reported on Thursday.

?We hope to get a 60 percent stake (in the JV). Finalization of the agreement will be made next week,? Bangka Belitung Governor Rustam Effendi said.

The joint venture is seeking to acquire the former tin assets of Koba Tin as the government has decided not to extend the latter company?s contract. Malaysia?s Smelting Group owns 75 percent of Kota Tin, while Timah owns a 25 percent stake.

Timah previously stated that it wants to have a controlling 51 percent stake in the joint venture.

Elsewhere, Rustam said that the provincial administration has allocated local provincial budget to be invested in the ex-Koba Tin assets, and plans to also get additional financing from private investors. He declined to disclose the name of the investors. (*)