Timah ready to take over Koba Tin

IDX-listed PT Timah Tbk said it is ready to take over the concession area owned by PT Koba Tin if the government does not extend its contract of work (KK) over the mining area which will end next week, Kontan reported on Thursday.

PT Timah?s corporate secretary Agung Nugroho said in Jakarta on Wednesday that the tin mining company was still waiting for the government?s decision whether or not to extend Koba?s contract of work.

He said that the government was currently conducting an audit to determine the amount of compensation it should pay to Koba Tin, if the contract of work was not extended. If the government decided not to extend the contract, PT Timah would be ready to take over the concession are and the smelting plant currently being operated by Koba Tin, Agung said.

Koba Tin, which is 75 percent owned by Malaysia Smelting Corporation Berhard and 25 percent by PT Timah, obtained a 30-year contract of work to develop a mining area in Bangka Belitung in 1973. The contract which ended in 2003 was extended for 10 years in 2003. According to the mining law, the contract of work can be extended twice, each for 10 years.

Agung said that if PT Timah was allowed to take over Koba Tin?s mining areas, its tin production could be increased to 48,000 tons in 2013 from its original target of 30,000 tons. (*)