Timah to boost downstream products over lower tin price
Wednesday, November 26 2008 - 02:00 AM WIB
"If prices are still lower next year, we may limit refined tin output and push for the production of more downstream products," Timah?s corporate secretary Abrun Abubakar said on Tuesday, referring to tin chemicals and tin solder.
He targeted downstream products will account 10 percent of the company's total output.
The firm is bulding a wholly-owned tin solder processing plant which is expected to undergo trial production by the end of December this year. In the beginning, the plant is expected to produce 2,100 tons annually with output to be exported to Asia-Pacific countries, particularly China, according to Abrun.
Aside from the tin solder processing plant, the firm will build a tin chemicals processing plant starting next year with a capacity of 30,000 tons per year. The output will also be exportred to the Asia-Pacific region.
He declined to give a production outlook for next year. But the company has said it expected tin output to stay flat in 2009 due to falling prices.
Timah may produce between 45,000 to 48,000 tons of refined tin this year, below an initial target of 50,000 tons due to temporary shutdown of small miners that supply ore after tin prices fell.
In 2007, Timah produced 58,325 tons of refined tin. (denny/Bernard)