Indonesia’s PT Koba Tin is expected to recommence production at its smelter on Bangka island on Monday, according to reports from Reuters and Metal Bulletin. Output has been stopped since 29 January, on the orders of the local police chief, following allegations that the company’s sub-contractors had been involved in illegal mining on forest land.
The smelter has a capacity of 2,000 tpm, but had been operating at a rate of 1,000 tpm prior to the latest police action. About two-thirds of this production comes from the company’s own mining operations, while until January some 350 tpm was obtained from sub-contractors. Koba introduced the sub-contracting system with the approval of the Department of Mineral Resources and other authorities last August.
Police have alleged that two contractors were involved in illegal mining. However last week Koba’s majority shareholder Malaysia Smelting Corporation said in a statement that on further investigation “It was discovered that one of them was no longer a sub-contractor of PT Koba Tin. The alleged production from the other sub-contractor under investigation was part of a shipment of only 3 tonnes to PT Koba Tin… internal control measures and investigation have confirmed that all production from its appointed sub-contractors have been derived from mining activities carried out within the Company’s CoW (Contract of Work area) and outside of the forest area.” MSC also noted that all five Koba employees called in by the police to help with their enquiries have since been released.
