The Indonesian state tin company PT Timah is considering increasing its current 25% stake in the country’s other major integrated producer PT Koba Tin, according to local news reports. PT Koba Tin holds a large Contract of Work (COW) mining concession in the south east of Bangka island and produced 7,455 tonnes of refined tin in 2009. It is a joint venture between Timah and Kajuara Mining (75%), which in turn has been controlled by Malaysia Smelting Corporation since 2002.
An audit is being conducted of the liquidity of Koba, Wachid Usman, the President Director of Timah, told the newspaper Investor Daily. A comprehensive study is needed before making any decision on acquiring an increased stake as Koba Tin’s COW will end in 2013, Wachid said.
