In a press briefing yesterday, PT Timah executives said that the company was pursuing plans to move into solder and tin chemicals production, despite overall cutbacks in capital spending. A combination of lower refined metal output and increased tin products activity would mean less metal available to traders.
"Anticipating low tin prices next year, we will sell our tin products to end-users instead of traders. We will also boost selling of derivative downstream value-added products like tin solders," Timah Corporate Secretary Abrun Abubakar told the Jakarta Post newspaper. Construction of the 2,000 tpy capacity solder plant on Kundur island, Riau province, is due to be completed in December. Construction of a Rp 300 billion (US$25 million) tin chemicals plant is due to start next year and be completed in 2010.
The company will roll over part of its planned Rp1.4 trillion ($115 million) of capital expenditure for this year to 2009, Finance Director Krishna Syarif told Bloomberg. To date only some Rp 600 million has been spent this year and plans to diversify further into coal production are under review.
Timah’s refined tin production in 2008 is likely to be 45,000 – 48,000 tonnes, according to Abrun, down from the 58,325 tonnes produced last year. Output in 2009 is expected to be at the same level as in 2008, with investment in increased offshore mining offsetting reduced purchases of ore from small mines.
