Timah seeks loan to boost production from unconventional miners

State-owned tin mining company PT Timah Tbk is searching for a US$20 million to $30 million loan (about Rp 182 billion to Rp 273 billion) to boost production, especially from unconventional miners, Bisnis Indonesia reported Monday.

The unconventional miners at present produce 5,000 tons of tin per month.

?The supply of tin ore from unconventional miners has increased significantly to 3,600 tons in October from 2,000 a month ago. And in November, it may surpass 5,000 tons,? Timah?s president director Thobrani Alwi said recently in Jakarta.

He said Timah?s current production level has reached 40,000 tons per year. With the sharp increase in unconventional miners? production, the company?s total production may reach 120,000 tons per year.

Thobrani said that the ever since private tin mining business activities were regulated in October, the administration of Bangka and Belitung Islands province has been asking PT Timah to buy tin ore from the unconventional miners at a reasonable price.

? We need around $20 million to $30 million and several banks have already said they can provide the loan,? Thobrani said.

According to Thobrani, if Timah?s production reaches 120,000 tons, Indonesia will control 45 percent of the global tin market and can influence its price.

?We are optimistic about the company?s performance with the increase in tin prices on London?s Metal Exchange and the jump in production,? he said. (*)