JAKARTA (Yosefardi) – Shares of state tin producer PT Timah Tbk (TINS) gained 1.4% to Rp1,480 per share this morning following news contract of work for Koba Tin was terminated.
Jero Wacik, energy & mineral resources minister, had on September 18, 2013, signed a decree about termination of Koba Tin’s contract of work (CoW), which was expired March 31, 2013.
The 41,300 hectares tin concession is now considered a State Reserves Area (Wilayah Pencadangan Negara/WPN). After the WPN status is affirmed, government may give the area to new contractor.
During the transition period, PT Timah Tbk (TINS), owner of 25% shares in Koba Tin, will manage the concession.
Timah earlier said it mulls to set up new joint venture (JV) with local government-owned companies to get working contract for mining, exploring, and smelting tins in Bangka island, Bangka Belitung province, for anticipating the failure in getting extension of contract of work for PT Koba Tin from the government of Indonesia.