Thailand’s last major tin mining company, Tongkah Harbour Limited, is looking to resume offshore dredging operations, which it suspended in 2005. The company, which is also involved in gold mining, quarrying and property development, reported a first half net profit of 37.4 million baht (US$1.1 million), after several years of losses.
Gen Kittisak Rathprasert, a THL executive director, told the Bangkok Post that the rise in gold and tin prices had strongly benefited the company. Sea Minerals, an 83.7% subsidiary of THL, has bid for offshore tin mining concession with estimated exploitable resources of 41,460 tonnes. A formal licence is expected to be granted by the end of the year. “With tin prices rising, it’s feasible to re-enter the sector. We are looking to purchase ore from other sources as well as possibly form a joint venture with other mining firms needing capital or technical know-how,” Gen Kittisak said.
Thailand’s tin mine production has dropped to only 200 tpy recently, although the Thaisarco smelter remains a major producer, using imported raw materials. A revision of previously very steep royalty rates on tin announced by the government late last year may help encourage new investments in mining.
