Govt may extend contract of Koba Tin

The government may extend mining contract of Koba Tin if the latter could announce scenario on shares divestment with the majority shareholders to be held by the state enterprises and local administration, Mineral and Coal Director General at the Ministry of Energy and Mineral Resources Thamrin Sihite said.

?Koba Tin could still present other scenario (to extend mining contract) such as by announcing scenario on its share divestment,? he said as quoted by Investor daily

Thamrin earlier said that the government would end the mining contract of Koba Tin, considering that it was not efficient.

Koba Tin held a second generation contract signed on October 16, 1973, which was extended in 2003 for another 10 years by former minister of energy and mineral resources, Purnomo Yusgiantoro.

PT Timah President Director Soekrisno earlier said that the company would take over 100 percent of Koba Tin?s shares if necessary. But he suggested that it would be better if a local-administration-owned firm was also given a portion of ownership in Koba Tin.(*)