A contract of works is roughly the Indonesian equivalent of a minerals tenement, but spells out ahead of time all conditions including royalties and tax rates.

Iluka managing director Malcom Macpherson said that the approval would provide security of tenure for the company’s tin mining and smelting operations on Bangka Island.

“We appreciate the government’s decision. It gives us the opportunity to plan for the mining of all the tin reserves in the Koba lease area,” he said.