Timah settles 50 percent of 2004 sales

State-owned tin miner PT Tambang Timah said Thursday it has settled over 50 percent of its 2004 annual sales contracts, a company official was quoted by OsterDowJones.

On average, these deals were set at premiums of $150-$160 a metric ton, free-on-board Singapore basis, up 50 percent from 2003's figures.

These are based either on the London Metal Exchange cash price or the Kuala Lumpur Tin Market's prices, depending on the customers, he said.

European buyers would use the LME price, while most in Asia use the KLTM's prices, he said.

Most of Timah's clients "prefer to sign the long-term contracts, but on our side, we are reluctant because of the shortage of concentrate," he said.

However, Timah is sticking to its practice of committing 50% of its sales to long-term contracts - which last a year - in 2004 and the rest to the spot market, to maintain its relationship with its long-term customers, he said. (*)