Local news media reported that production at the PT Koba tin mining site could revive, with PT Timah holding a 40% stake and the Bangka-Belitung provincial government holding the remaining equity through three regional state-owned enterprises (BUMD). However the prospective partners first have to secure a special mining licence (IUPK) from the Energy and Mineral Resources Ministry, which would be subject to approval from Indonesia’s House of Representatives. Bangka Belitung Governor Rustam Effendi said last week that private investors could also possibly be involved.
Koba Tin was previously operated under a contract of work as a 75%:25% joint venture between Malaysia Smelting Corporation and PT Timah, but production was halted in October 2012 in advance of the expiry of the CoW at the end of March 2013. Mining was by one large onshore dredge and several gravel pump operations, feeding a 24,000 tpy smelter and refinery. Koba’s production peaked at 23,530 tonnes in 2004, but declined to only 1,882 tonnes in 2012 prior to its closure.
