Malaysia Smelting Corporation (MSC) said today that force majeure had been declared on shipments from its PT Koba Tin subsidiary in Indonesia. This follows a continuing investigation into its ore purchases and the arrest of several Koba executives at the weekend.
MSC said that during the period of the investigation, PT Koba was allowed to continue mining and smelting tin concentrates produced from its own dredging and gravel pump operations but delivery and shipment of tin metal was still suspended and as a result the company had declared force majeure.
The company added that its board expects the performance of the group for Q1 07 to be affected by current developments, while adding that necessary efforts were being undertaken for an early resolution. In an earlier statement MSC said that Koba had planned to produce 17,000 tonnes of tin this year.
Imam Sudjarwo, Bangka-Belitung police chief, told Reuters that police had sealed a warehouse and the company’s accounting section, but other facilities were operational. "Other facilities which have not been closed can run as usual."
When asked whether other facilities such as the smelter will be closed in the future, Sudjarwo said: "We don’t know yet because the investigation is still ongoing."
The three arrested Koba Tin directors, including president director Anuar Sidek, were being detained at the national police headquarters in Jakarta after questioning in Bangka over the weekend, said Sudjarwo.
