PT Timah builds power plant and tin chemical factory

State owned tin mining company PT Timah plans to build a coal-fired power plant and a tin chemical factory in the Tanjung Ular industrial estate in Mentok, one of the company?s tin production centers on Bangka island, Kontan reported on Tuesday.

The company?s corporate secretary Agung Nugroho said on Monday that the new power plant which would have capacity of 2 x 8 megawatt would replace the existing diesel power plant to improve cost efficiency.

?With the operation of the coal fired power plant, we hope we can save about Rp 60 billion in operating costs a year, ? he said, adding that if the analysis on the environmental impact of the power plant could be improved by the government by the end of this year, the construction of the power plant could be commenced early next year.

?We hope the new power plant can begin commercial operation in late 2013 or early 2014,? he added.

In addition to the power plant, PT Timah will also build its second tin chemical factory in the same industrial estate.

Agung said that the tin chemical factory would be able to produce about 10,000 tons a year, the same with the production capacity of the company?s existing tin chemical factory in Cilegon, Banten.

He said that he hoped the tin chemical could begin operation in 2014, if the construction of the power plant could be completed in late 2013. For the two projects, the company would invest up to Rp 450 billion. (*)