Malaysia Smelting Corporation’s 75%-owned subsidiary, PT Koba Tin is still awaiting a decision from the Indonesian government on its application for a 10-year extension of its contract of work in Indonesia which expired on March 31, 2013.
In a statement to Bursa Malaysia on Monday the company re-iterated that it had on April 2, 2013 announced that Koba Tin had received notification from the Indonesian government that it was still continuing with its evaluation for the extension of Koba Tin’s contract of work for up to a maximum period of three months from April 1, 2013. “The company will make announcements to the exchanges as and when there are further developments concerning this matter,” the company said.
According to the Sun Daily newspaper Koba Tin had earlier submitted the application for a 10-year extension of the contract of work through March 31, 2023 and had made several presentations to the Indonesian government.
Koba Tin produced only 1,882 tonnes of refined tin last year, from a smelter with a capacity of 25,000 tpy, and ceased operations in October. MSC has written off its investment, but has a deal in place to reduce its shareholding to a minority interest if a contract extension or new mining lease is granted.
