The Indonesian government has yet to renew the tin mining contract of work for Malaysia Smelting Corporation’s 75%-owned subsidiary, PT Koba Tin. The CoW expired at the end of March. In a statement to Bursa Malaysia MSC said PT Koba Tin has received notification from the Indonesian authorities that they are still evaluating the possibility of extending the contract. “In the meantime, PT Koba Tin is pursuing the matter with the government of Indonesia.” According to MSC, the policymakers have allowed PT Koba Tin to continue with its operations for up to three months beginning April 1 while the evaluation is going on. The evaluation follows PT Koba Tin’s application for a 10-year extension until 2023 for its operations in Indonesia.
Deputy Energy and Mineral Resources Minister Susilo Siswoutomo told the Jakarta Post that “nothing had yet been carved in stone on Koba Tin’s future”. The ministry, he said, had established a team to review the contract for the next three months. The decision, he said, was made to ensure there would not be massive layoffs for Koba Tin’s workers amid the contract uncertainty. Koba Tin employs 2,464 workers, of which 486 are permanent and the rest are contracted or outsourced, the Post reported.
