PT Timah diversifies into asphalt production
Thursday, April 17 2003 - 01:53 AM WIB
PT Timah President Director Thobrani Alwi said in Pangkal Pinang on Wednesday that said that the tin reserves in the company?s mining sites on the two islands would totally deplete within the next 10 years.
To anticipate the depletion of the tin reserves, the company would enter new businesses including asphalt production, palm oil plantations and dredging services to enable it to survive, Thobrani said.
"We have entered cooperation agreement with PT Sarana Karya in asphalt production in Montok, and with the local government in palm oil plantations to anticipate the depletion in the tin reserves," he was quoted as saying.
He estimated that the company?s tin metal production would increase to 40,000 tons this year from 30,000 tons in the previous year.
According to him, the tin production is not so promising in recent years due to uncertainty in prices. The tin prices dropped to US$4,200 per ton last year from $4,400 per ton due to an oversupply in the world?s market. The price has surged to $4,500 per ton but it is still far below the ideal level.
He said that the tin stocks in the world?s market has gradually dropped to 25,000 tons from about 37,000 tons six months ago. The stock is still far from the ideal level of 15,000 tons despite the decline.
PT Timah controls about 20 percent of the world?s tin production, which reaches about 200,000 tons a year. (*)