Bangka-Belitung tin smelters halt output on low prices

A consortium of seven small-scale tin smelters in Bangka-Belitung province has stopped production because of falling tin prices and will resume production until tin prices recover to US$18,000 per ton.

?Many of our miners have been idle since early October as a result of falling tin prices and rising production costs (due in part to higher fuel costs),? said Patris Lumumba, chairman of the consortium called Bangka-Belitung Timah Sejahtera, said on Tuesday.

?The smelters are likely to be closed for the rest of the year. If prices rise to $18,000/ton, we would likely resume production immediately,? he said.

The seven smelters have a combined production capacity of 4,000-5,000 tons of tin ingots a month, but actual production has hovered around 3,000 tons, said Patris.

Tin hit a record high of $25,500/ton in May, mostly due to declining supply from main tin producing countries China and Indonesia and low global inventories. But its price has since fallen and hit $12,900/ton Monday, its lowest level since February 2007.

PT Timahm, a state-owned company, and PT Koba Tin, the country?s largest tin companies, haven't cut tin production despite falling tin prices amid rising production costs. PT Timah has said it will produce 50,000 tons of tin this year, down from its record production of 58,325 tons last year. Koba Tin produces around 600 tons of tin a month. (*)