PT Timah signs sale deal with Hungarian buyer

State-owned tin mining company PT Timah said it signed a sale contract worth US$950,000 with a buyer from Hungary, Metalloglobus Femonto es Kereskedelmi Kft, at the Export Product Exhibition (PPE) in Jakarta Friday.

PT Timah?s director for operation Ari Fauzi said that the Metalloglobus Femento es Kereskedelmi Kft agreed to purchase at least 100 tons of tin from PT Timah for the period of October and December, 2006, Kompas reported Saturday.

He said that the Hungarian buyer also asked PT Timah to supply between 200 and 400 tons of tin per month for 2007.

Fuazi said that the signing of the sale deal had a significant impact on the sale of the company?s tin next year.

?The contract value may reach US$7 million a year. We hope that more trade deals will be made,? Fauzi said.

PT Timah has a tin output of between 3,000 and 4,000 tons per month. Of the outputs, six percent is exported to a number of countries in Asia Pacific region, 25 percent to several European countries and 15 percent to several countries in North America.

Currently, the world?s tin consumption reaches 320,000 tons per year. Indonesia supplies around 120,000 tons of tin per year.

Of the 120,000 tons, around 60,000 tons come from illegal miners and 12,000 tons supplied by PT Koba Tin.

Fauzi also disclosed the company?s expansion plan, saying that it would boost its tin production capacity up to 6,000 tons per month. (*)