Timah plans to operate two subsidiaries in Myanmar

State owned tin mining company PT Timah will establish two subsidiaries to support its mining operations in Myanmar, The Jakarta Post reported on Saturday.

Timah's President Director Sukrisno said one subsidiary would operate the firm?s tin mine in Tanithary province in Myanmar and the other would market its tin produced in Myanmar.

?We expect the two new business units, which will be fully owned by Timah, to begin operations in 2014,? Sukrisno said in Jakarta.

Timah, according to Sukrisno, expected to start exploration in Myanmar in June. The firm is currently processing needed permits.

?There are several steps before we can really start exploring reserves there. Right now, the focus is to obtain all necessary permits from the local government in accordance with their mining procedures,? he said.

In November, Timah secured a concession in Pubyien-Tamok in Myeik, Tanithary, from Myanmar?s energy ministry

The company has allocated US$18 million to develop the 10,000-hectare site over a three-year period, expecting to produce 10,000 tons or tin per year from the mine, which would make the firm the largest tin producer in the world.

Timah will operate its concession in Myanmar mine under a production sharing contract.

The company has envisioned reaping 80 percent of the production with the remainder going to the Myanmar government. The firm is currently still waiting for the local government?s response to its proposal. (*)