Yunnan Tin Company (YTC) will repay $6 million of debts incurred by a Singapore joint venture tin refinery, according to Bloomberg. The unit, Singapore Tin Industries Pte (STI), borrowed from United Overseas Bank Ltd. and was unable to repay the loans because a shortage of raw materials affected its production, YTC said today in a statement to the Shenzhen Stock Exchange.
YTC holds a 42% stake in STI, with local partners KJP International holding the balance. The large new refinery was established in 2006, but has struggled to obtain Indonesian crude metal for refining. Tin output dropped from 8,738 tonnes in 2006 to 2,914 tonnes in 2007 and the plant has been inactive for much of this year.
