Timah, MSC mulls smelter joint venture

State tin miner PT. Timah Tbk. is planning to build new smelter in joint venture with Malaysian Smeting Corporation Berhad (MSC) in Kundur, Karimun regency, Riau province, an industry source said.

The source said the new smelter would smelt Timah?s tin concentrate produced in the island. Timah and MSC is in negotiation to relocate the latter?s smelter to Kundur.

?If Timah and MSC could reach deal, the smelter could operate as early as next year,? said the source.

The source said the smelter production capacity would be around 8,000 tons per annum.

However, the source said talks were still at preliminary stage. ?MSC?s 75 percent subsidiary PT. Koba Tin is applying to build second smelter in Koba, but the government may turn down the proposal because the plan is not backed by sufficient tin reserves.?

?MSC seems to make Koba Tin?s second smelter plan approval as precondition to proceed negotiation to relocate its smelter to Kundur,? said the source.

Timah is the world?s largest tin producer with production capacity of around 48,000 tons per annum. (alex)