Timah assigned lower export quota this month

By Thomas R. Sembiring

IDX-listed tin giant PT Timah Tbk said that it has been allocated a lower export quota of 1,500 tons this month following recent agreement on further export cut to help revive the price of the commodity.

This was said by Timah Corporate Secretary Agung Nugroho to Petromindo.com late Wednesday.

Timah and other tin producers in the key producing province of Bangka Belitung previously agreed to limit export at 4,500 tons per month. But after the move failed to recover the price, Timah and producers recently moved to further tighten export, setting a lower export limit of 4,000 tons per month.

Agung said that under the new limit, Timah is assigned a quota of 1,500 tons for the month of May, and private-owned smelters 2,500 tons. This monthly quota would be reviewed every month depending on price development, he added.

Last month, Timah was assigned an export quota of 2,500 tons (including production from its facility in Kundur, Riau), but realized export was only 1,500 tons, while other smelters exceeded their combined quota of 2,000 tons at 3,300 tons. This month, Timah is thus given smaller export quota.

?We?ll comply with this agreement,? Agung said, adding that the company?s full-year output target is still maintained at 25,000-28,000 tons.

Agung said the company is hopeful that tin price would recover to a average of US$20,000-$22,000 per ton level this year as current price has reached bottom.

Editing by Reiner Simanjuntak