PT Timah’s offshore dredging operations produced 18, 208 tonnes of tin-in-concentrate in 2009, up 31% on the previous year and the highest annual total achieved since 1998. The growth reflects the state company’s increased use of smaller and more economical cutter suction dredges on its mining leases. Timah plans to have 15 of its own cutter suction vessels, each costing some US$2.5 million, in use by the end of 2010 and in addition uses a larger number of contractor operated dredges. The company also plans to have its first new large deep water bucket wheel dredge, mining to a depth of up to 75 metres, in operation by 2011. These investments are in line with its “Go Offshore, Go Deeper” strategy.
Timah’s total production of tin-in-concentrates, including purchases from small mines, fell by 20% to 37,701 tonnes last year, due to a 41% fall in its inland production/purchases to 19,493 tonnes. However a large-scale depletion of stocks of tin metal, concentrates and slag allowed it to achieve higher levels of refined tin production and sales. Refined tin production fell by 8% year-on-year to 45,086 tonnes, while metal sales rose 6% to 49,240 tonnes.
Timah reported a net profit for the year of Rp313.8 billion (US$30.5 million), down 77% on 2008 after a very poor first half, but ahead of analysts’ projections. The average price realised on tin sales was $13,558/tonne, compared to an average delivered cost last year of $12,030/tonne. It is currently using what it describes as a “very conservative” average realised price assumption of $14,800/tonne in its sales budget for 2010.
