Timah suspends production at Kelabat

IDX-listed tin giant PT Timah Tbk officially suspended on Wednesday tin production activities at the Kelabat Bay in Bangka Belitung following ruling issued by the provincial administration.

Company Corporate Secretary Agung Nugroho was quoted by Kontan as saying that the Kelabat operation accounted for 10 percent of the company?s total production. He, however, feared that the suspension may affect other company offshore operations, which accounted for 70 percent of the total production. Timah has set a production target of 26,000-32,000 tons this year.

Agung said that the suspension of the Kelabat operation followed instruction from Bangka Belitung Governor Rustam Effendi. The local government decision to stop the Kelabat operation came following protest from local fishermen and non-governmental organizations, who accused the Timah operation of damaging the environment. Timah has earlier pointed fingers at the massive illegal mining activities.

Director General of Mineral and Coal Bambang Gatot Ariyono declined to provide much comments, saying that the suspension of the Kelabat operation was in line with the authority of the local Bangka Belitung government. (*)