PT Timah has no plan to increase production next year

IDX-listed PT Timah, one of the largest tin producers, has no plan to increase production next year as an effort to reduce an oversupply in the global tin market, Kontan reported on Thursday.

The president director of the state owned tin miner, Sukrisno said in Jakarta on Wednesday that PT Timah would only produce between 29,000 tons and 30,000 tons next year or at the same level with the projected output this year.

He said that by limiting the production at this year?s level, there would be no significant increase in the tin supply in the world?s tin market. By doing so, PT Perusahaan Listrik Negara hoped the tin price, which has significantly dropped to US$21,000 per ton this year from an average of $26,500 per ton last year, would be able to increase, he added.

PT Timah however will continue with its expansion program, despite the plan to limit production.

Next year, the company has for example allocated Rp 2 trillion in its budget to finance expansion, up by 45 percent from Rp 1.38 trillion this year, to support expansion plan, which among others include the construction of a coal-fired power plant with a capacity of 2 x 8 megawatt in the Tanjung Ular industrial estate in Mentok regency, Bangka, acquisition of tin mine in Myanmar and two coal mines outside Java .

The company will spend about Rp 450 billion for the construction of the power plant and about $18 million for the acquisition of the Myanmar tin mine as well as Rp 500 billion for coal mine acquisition. (*)