Malaysia Smelting Corporation announced today that its 75% owned Indonesian subsidiary PT Koba Tin had been granted an export licence by the Ministry of Trade and will immediately start shipping tin from its smelter on Bangka island.
In a statement to the Kuala Lumpur Stock Exchange the company said:
“PT Koba Tin shall immediately resume delivery and shipment of its production of tin metal from its own dredging and gravel pump operations amounting to an average of 500 to 600 tonnes of tin metal per month. However, production from small scale mining operations within the company’s Contract of Work (CoW) area shall remain suspended pending the outcome of ongoing discussion with Indonesian authorities. Management of PT Koba Tin would also intensify its discussion with the authorities for permission for the release of the 500 tonnes of tin metal still withheld by the police.”
Following police action against the company in late January, force majeure on shipments had been declared on 12 February. Assuming that production has been stockpiled since then, there is likely to be some 1,200 tonnes of metal available for shipment shortly, apart from the stock impounded by the police.
The company also commented on the legal actions it faces:
“In relation to the investigation on PT Koba Tin and its three executive directors, the legal counsels for the subsidiary have advised that the Indonesian police have completed their investigation and consequently handed over all the investigatory documents and findings (dossier) to the Attorney General’s office. The subsidiary has been further advised that the Attorney General’s office shall review the documents and assess if there is a case against the directors/ the subsidiary company.”
