Indonesia’s PT Timah today reported unaudited third quarter net income of Rp 483.7 billion (US$ 52 million), more than 13 times the profit of Rp. 36.8 billion recorded in the corresponding period of last year. Average margin per tonne in the latest quarter was US$4,905. The state-controlled company’s net income in January-September was Rp 1,264.5 billion (US$ 139 million), almost 20 times last year’s figure.
Timah has continued to produce and sell refined tin at a very high volume, although its concentrate intake has fallen sharply since the second quarter. Refined tin production in January-September was 46,925 tonnes, 49% up the same period of 2006, while tin sales volume rose by 54% to 47,270 tonnes. Concentrate production (mainly in the form of purchases from small-scale miners and sub-contractors) was also at a record level in January-September, but the latest quarter’s total, at 9,453 tonnes tin-in-concentrate, was less than half the previous quarter’s figure, reflecting increased competition in the domestic ore market.
The drop in concentrate intake has resulted in a 46% fall in tin-in-concentrate stocks held by the company, to 9,091 tonnes during the three months to end-September. Refined tin stocks fell by 34% to 4,843 tonnes. However stocks of tin contained in slags continued to increase to 18,577 tonnes. Timah is currently increasing its capacity to smelt this low grade material.
