Timah plans to build smelter in Myanmar
Friday, October 24 2014 - 01:43 AM WIB
The paper quoted Timah President Director Sukrisno as saying that the state-controlled miner was currently conducting a study of the plant that was expected to conclude by year-end. ?We hope to start construction of the Myanmar smelter next year,? he said Thursday.
Sukrisno said that the smelter, which is estimated to require Rp 100 billion (US$8.3 million) in investment, would be built to tap into potential from the Myanmar market, as the country usually marketed the commodity raw.
The smelting facility would be part of Timah?s 10,000-hectare tin concession area in Pubyien-Tamok, Tanihary, Myanmar, that it acquired late in 2012. The area is estimated to produce 12,000 tons of tin per year and is expected to start commercial production early next year.
Timah started its exploration back in June, which it estimated would wrap up after six months. Timah has set up two subsidiaries to support its Myanmar expansion: Timah Myanmar Mining to handle the company?s mining activities and Timah Myanmar to manage tin processing in partnership with a local state-run company.
Timah has since 2012 set up $18 million for its Myanmar expansion, which will also include a proposal to operate 18 blocks with a total area of 180,000 hectares in the future, Sukrisno added.
Timah?s plans in Myanmar were part of efforts to increase the firm?s tin reserves, because its reserves from concessions on Bangka and Belitung islands have begun to reduce significantly.
Myanmar is now emerging as the new frontier in the tin industry, as Indonesia, the biggest shipper, seeks to restrict supply and boost prices. Output in Myanmar is reportedly set to rise by 12 percent to 28,000 metric tons next year, supported by expansion from local firms. (*)