Kobatin to extend tin mining contract

Kobatin to extend tin mining contract

JAKARTA (JP): PT Kobatin is seeking to extend its tin mining
contract with state-owned PT Tambang Timah on Bangka island
through 2007.

Company president Dick Peterson said in Palembang yesterday
that the current contract ended in 2003. PT Kobatin is a
subsidiary of an Australian company.

"We are seeking a contract extension from the state firm not
only to gain profit, but also to keep our 4,500 workers
employed," he was quoted by Antara as saying after meeting South
Sumatra's Vice Governor H.M. Arub.

The Bangka regent and the mines and energy ministry's director
general of general mining have approved the plan, he said.

"We're waiting for a recommendation from the province's
governor," he added.

Peterson said the company's mining concession of 400 square
kilometers had annual production of 10,000 tons.

The company has invested US$25 million in tin exploration on
the island, he said. "There are still about 100,000 tons of tin
deposits in our mining concession on the island."

Bangka, part of South Sumatra province, is the country's
largest tin mining area. PT Tambang Timah has other mines in
Belitung, Karimun and Kundur islands.

The head of the provincial office of the ministry of industry
and trade in South Sumatra, Hariasa Adiwijata, said the
province's tin exports in February reached almost 3,000 tons
worth $17.07 million, compared to almost 2,600 tons in the
previous month.

Tin from the province was exported to Singapore, the
Philippines, Japan, South Korea and several western European
countries. (bnt)