PT Timah, Indonesia’s largest tin producer, plans to increase mining of deposits in the sea as illegal miners encroach on its land, Bloomberg reported. Offshore mining may account for 60% to 70% of total output this year, President Director Wachid Usman told reporters today at a conference in Jakarta. “We’re competing with illegal miners that operate near and within our mining areas,” he said.
Offshore production accounted for 48% of 2009 mine production (including purchases from small onshore mines within its leases), up from 29% in 2008 and 21% in 2007. The company is maintaining a refined tin output target of 50,000 tonnes for the year, Usman also said. “We remain conservative for this year especially as the crisis in Greece may affect global demand for tin.”
In a separate report by the Antara news agency, Timah said that it plans to borrow Rp 1.5 trillion (US$162 million) to buy five new offshore tin dredges in 2011. The loans are likely to be provided by PT Bank Mandiri and PT Bank Rakyat Indonesia.
