Reuters reported that Indonesia's largest tin miner, PT Timah has been asked by the government to take over the operations of Malaysian led JV PT Koba Tin when its contract expires in 2013.

Indonesia, the world's biggest exporter of refined tin, announced a series of new mining rules this year that include limiting foreign ownership in mines to no more than 49% after 10 years of production.

Unlisted Koba Tin, which is also involved in the processing, smelting and marketing of tin, operates under Indonesia's previous contract of work licensing system and has a total area of 41,680 hectares in the Bangka Belitung islands, the country's main tin producing region.

Mr Agung Nugroho Timah's corporate secretary said that "The government confirmed that there is no extension for Koba Tin and it's a request from the government that PT Timah has to be ready for that take over. But there is no agreement at all at the moment."

Last month, a spokesman at Koba Tin said that its CoW was due to expire on March 31st 2013 but that the company had submitted an application for 10 year extension and was awaiting a response from the Indonesian government.

Malaysia Smelting Corporation has said it would reduce its equity interest in Koba Tin to 30% with the remaining 70% being Indonesian owned. Earlier this year, demonstrators blocked Koba Tin's exports due to a pay dispute.

Source - Reuters

(www.steelguru.com)