Tommy Winata announces plan to invest in Koba Tin

Indonesian leading tycoon Tommy Winata has announced plans to acquire a stake in the country's second largest tin producer PT Koba Tin, vowing to set up a 'consortium'  involving all tin producers in Bangka and Belitung in order to get a maximum benefits from the commodity, Bangka Pos reported on Thursday.

Tommy, the chairman of the Artha Graha group, which is closely linked with the military and has businesses in various sectors, including property and banking, said he had been asked by Koba Tin's majority shareholder Malaysia Smelting Corporation (MSC) to "join" the company. MSC has 75 percent stake in Koba in partnership with state owned mining company PT Timah.

Tommy said he had accepted MNC's offer, but he did not disclose the portion of stake it would acquire in Koba Tin. 

"I feel grateful being asked by friends in Malaysia Smelting Corporation to participate in the management of Koba Tin and, together with other tin producers, to create a world-class community in Bangka and Belitung and Indonesia based on tin business," Tommy said during the meeting with the newly-elected govenor of the Bangka Belitung province, Eko Maulana Ali, and the province's council speaker Munir Saleh.

He said all tin producers in the region needed to form a "consortium" in oder that the region could much benefit from tin business.

"More than 80 percent of tin producers, including PT Timah, have agreed to participate in a solid consortium in order to reach a common goal,"  Tommy said.

Tommy said all tin resources exploited in the province should be processed into metal in the province in order to create a lot of jobs for the local people.

Most of independent smelters in the province have suspended activities for months following a crackdown by the govenrment on illegal miners. The police has also detained the top executives of Koba Tin on charges of buying tin ores from illegal miners. (Bodega)