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)