RI to raise tin production despite sluggish market

Indonesia will go ahead with its plan to increase tin production to 80,000 tons this year despite the drop in prices of the tin metal in the international market, Investor Daily reported on Tuesday.

Director General of Geology and Mineral Resources Simon F. Sembiring said in Jakarta that the country's target to produce up to 80,000 tons of tin metal this year would not be revised although the prices of tin in the world market remained in the downward direction.

According to Simon, if the production from illegal tin mines is included, the country's tin total production will reach over 100,000 tons. Last year, Indonesia's total tin production reached 76,000 tons.

The country's two major tin mining companies PT Timah and PT Koba Tin have maintained relatively high production target despite the drop in the tin prices to US$7,070 per ton at present from about US$7,800 per ton.

PT Timah will, for example, increase its production to 40,000 tons this year from 35,000 tons in 2004. PT Koba will produce 22,000 tons, slightly lower than 23,000 tons last year. (*)