[b] At Koba Tin, friendly means

At Koba Tin, friendly means

genuine care for community and environment

Positioning itself as a friendly mining company, PT Koba Tin
genuinely implements all the nuances of the slogan in its
operations and has been since day one.

Sharing with and giving back to the community colors not only
Koba Tin's philosophy, but is actually translated in its daily
activities.

Hence, being a good corporate citizen for Koba Tin is a
natural. Community development, extensive environmental
protection, land reclamation and restoration projects as well as
providing adequate infrastructural requirements show that the
company's concerns are not merely as restitution of the resulting
impacts of its mining operations. Its real intention is to
enhance the livelihood of the community through a specially
planned agenda to inculcate, educate and offer viable vocational
training and opportunities for better income.

Environmental management is another major concern for this
joint venture tin mining company between Malaysia Smelting
Corporation Berhad (MSC) and PT TIMAH Tbk. MSC has 75 percent of
its shares, while the rest is owned by PT TIMAH. Both are public
listed companies. Commencing operation in 1974, PT Koba Tin
operates under a Contract of Work (COW) from the Indonesian
Government that has been extended to 2013 for an area of 417
square kilometers in the southeastern corner of Bangka island in
Sumatera.

For Koba Tin environmentally responsible manner means:

* Complying with applicable legislation
* Implementing effective environmental management systems
* Minimizing effects on the environment while maximizing resource
viability
* More efficient use of energy and materials
* Providing relevant training and support for all personnel
* Cooperating with local community
* Developing innovative approaches through scientific research
and technology transfer
* Monitoring and reporting environmental performance

Reclamation management of ex-mining land at Koba Tin
incorporates three important aspects:

* Ecological (recycling, mutual support, variety of biological
resources
* Economic (job opportunities, increasing income, food sources)
* Socio-cultural (improving social strata, increasing knowledge,
care of environment)

Koba Tin also develops a concept of integrated reclamation of
the mined out areas. Some of the ex-mining land and ponds can be
turned into productive integrated agriculture projects, such as a
combination of agriculture, animal husbandry and fish farming. To
support the ecological support capacity of the mined-out areas,
reforestation is also carried out.

Koba Tin's community development program, covering
agriculture, aquaculture, people's mining and small business
development, is executed in the villages adjacent to the
company's leases where about 70,000 people live.

For community empowerment, Koba Tin has its own nursery for
growing seedlings and a compost (organic fertilizer) plant to
support the reforestation program.

A freshwater fish farm project, where fish breeding and
rearing using floating net method has been completed
successfully. Another such project is being prepared to be
eventually operated by the local community.

This is only one example of how, after mine closure, mined out
land can be developed into productive projects for the benefit of
the community around Koba Tin.

Mohd. Anuar sidek, the president director, aptly sums up the
spirit of Koba Tin: "Our management is mindful and focused on its
obligations to the community where it profits from and operates."