Timah signs $11.5m contract for tin plant project
Friday, March 6 2015 - 01:55 AM WIB
IDX-listed tin giant PT Timah Tbk said that its subsidiary PT Timah Industri has signed an EPC agreement with a total contract value US$11.5 million with Hangzhou Shengchuang Company Ltd and Capital Jet Trading Ltd for the construction of an intermediate tin plant and complementary tin chemical plant in Cilegon, Banten.
The company said in an annual financial report published Wednesday that under the engineering, procurement, and construction agreement, signed on February 5, Hangzhou will provide construction services, while Capital will commit funds for the project.
This agreement also mentions that Hangzhou and Capital are obliged to purchase the intermediate product at the minimum of 3,000MT/year in liquid form. Provisions concerning the purchase of intermediate products will be explained in a separate agreement, Timah said.
This agreement is expected to be completed in August 2015 with a period of six months after the first payment occurring on 16 February 2015, it added.
Timah Industri?s main business activity is associated with tin mining industry. Headquartered in the Cilegon Industrial Estate in Banten, the company is engaged in the field of PVC heat stabilizer, according to its website.
Editing by Reiner Simanjuntak