PT Timah will expand into asphalt production

Publicly listed tin mining company PT Tambang Timah will soon develop asphalt mining on Buton island, Southeast Sulawesi as part of its expansion into non-tin mining activities, Sriwijaya Post daily reported on Thursday.

The company?s spokesman Anhar Ramli said on Wednesday that PT Timah was still preparing the construction of the infrastructure for the development of the asphalt mining on the island.

According to him, the asphalt mine concessions controlled by PT Timah cover 7,666.9 hectares. The concessions with estimated asphalt deposit of 69 million tons comprise of four mining locations, respectively in Lawele (1.850,13 Ha), Siantopina (1.982,2 Ha), Ulala (1.982,2 Ha) and Kabungka (1.957,37 Ha).

"The asphalt deposits are generally found in about 0.5 meter under the ground. With the 69 million tons of asphalt deposit, the mining activities could last for 69 years,? he said.

The prospect of the asphalt production on the island is quite promising given a continued increase in the world?s demand for the natural asphalt, he said, adding that the fact that the natural asphalt is only found in Buton and some counties in Latin America such as Trinidad would make Timah as one of the world?s major asphalt producer.

"With such a position, PT Timah will be able to control the asphalt market in Asia and Australia,? he said.

According to him, the asphalt production would contribute royalties of about Rp 17.7 billion to the local government a year. (*)