Indonesia’s PT Timah is forecasting no change in its global tin sales in 2010 and will only expand production if prices are sustained above UUS$16,000/tonne, company executives told journalists today. However it will continue to expand its fleet of offshore dredges and is also looking to boost sales in North America.
"Sales may be unchanged from this year at around 49,000 tonnes. We are still very cautious because demand for tin is not yet fully recovering," Operations Director Setyo Sarjono told Reuters. Timah is looking at ways to increase sales to new markets, in particular in North America, President Director Wachid Usman also told Reuters. North America accounted for only 7% of the company’s total sales of 36,453 tonnes in the first three quarters of 2009, compared to 25% to Europe and 68% in Asia.
The Indonesian miner has set a target of around 45,000-48,000 tonnes of refined tin production this year and may continue at this level unless prices rise. "Only if prices are stable above $16,000 per tonne, then Timah may consider producing more," Corporate Secretary Abrun Abubakar told Metal Bulletin. This 2010 production target however still awaits approval from the company’s commissioner board, he added.
Offshore production will account for a growing proportion of total output over the coming years. Timah plans to boost tin production from offshore mines by adding four suction dredge units next year, on top of the seven suction dredges it currently has, Sarjono told Reuters. In addition over 30 contractor vessels also operate within its mining leases. Timah expects to produce between 23,000-24,000 tonnes of tin ore from its offshore mines in 2010. It produced 13,440 tonnes of tin ore in the first nine months of 2009. "We expect to increase production from offshore mines to 70% of the total production within the next three years," Sarjono said. Timah estimated that its offshore mines would contribute about 50% of its total output this year, up from 30% last year.
