Indonesia’s state-controlled tin company PT Timah today reported a Rp 314 billion (US$ 34 million) net profit in the quarter ending 31 March, 26 times higher than in the same period of 2006. Its margin per tonne hit a record level of $3,759/tonne, up from $313/tonne in January-March last year.
PT Timah’s concentrate intake has increased dramatically since last October, when competing independent smelters were shut down in a clampdown by the authorities. Following police action against the other major Indonesian tin producer, PT Koba Tin in January-February this year, Timah became the sole legal buyer of concentrates from small scale miners in the country.
Tin-in-concentrate received from inland mining operations in Q1 (nearly all purchased) amounted to 20,230 tonnes, three times the volume recorded in the corresponding period last year, while output from the company’s own offshore dredges fell 23% to 2,099 tonnes.
Reflecting the rise in concentrate intake, refined metal production rose by 48% to 14,350 tonnes in the quarter and there was also a large increase in stocks of concentrate and slag held at the end of the period. Stocks of tin-in-concentrate rose to 19,567 tonnes while the tin content of slags rose to 12,566 tonnes.
