Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo said here on Tuesday that the government will temporarily hand over the management of the mining area being exploited by Koba Tin to state-owned company PT Timah Tbk.
"This is only temporary and covers only maintenance and not production," he stated.
He noted that the government intends to finalize all necessary work and arrangements in the transitional period ahead of completely transferring the contract to another company.
One option on the table is to hand the mining contract over to a state-owned company, such as PT Timah, he suggested.
He pointed out that PT Koba Tin`s contract had been terminated by an evaluation team of experts and industry players after considering the advice of the Bangka-Belitung governor.
Koba Tin, which is a joint venture between Malaysia Smelting Corporation Berhad, a publicly listed company in Malaysia, holding 75 percent of Koba Tin`s shares, and PT Timah Tbk, holding 25 percent of the shares, lost US$40.9 million in 2012.
Susilo said he would involve the military and the police in securing the mining area following the termination of the company`s contract.
He asked PT Koba Tin to seek arbitration to settle the matter if it could not accept the termination notice. "(They can) go ahead. It is their right," he stated.
Based on Law No. 4 of 2009 on mineral and coal mining, a company holding a working contract that has expired is obliged to meet its obligations under the law, and these obligations must be approved by the minister of energy and mineral resources.
The obligations include handling the reclamation of land and making payments to the workers. The contracted company is also required to submit all its data to the minister of energy and mineral resources.
Expired contracts, meanwhile, must be handed over to the minister of energy and mineral resources, and these will later be offered to business entities such as cooperatives or individuals in accordance with certain systems established by the law.
Koba Tin`s contract was first signed on October 16, 1971, and was later extended several times until March 31, 2013.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
