JAKARTA (Yosefardi) – State tin producer PT Timah Tbk (TINS) 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, Investor Daily reported this morning.
Sukrisno, TINS’ president director, said this plan is mulled for anticipating the failure in getting extension of contract of work for PT Koba Tin from the government of Indonesia.
Koba Tin holds contract of work for 41,510 hectares mining area in Bangka island. Koba Tin is controlled by Malaysia Smelting Corporation Bhd (75% ownership) and PT Timah (the rest).
As reported earlier, Koba Tin’s contract of work expired on March 31, 2012. The government then granted three-month extension until June 30, 2013, which was followed with another two-month extension until August 31, 2013.
Government is expected to make final decision on the contract of PT Koba Tin, the second largest tin producer in Indonesia, this week.
Sukrisno earlier said it is better for the government to terminate the contract because it suffered significant loss from 25% interest in Koba Tin. He pointed to US$40.9 million of losses incurred in 2012, where Timah has to absorb 25% of it.