Timah to boost tin production up to 10,000 tons

State tin miner PT Timah Tbk will increase output up to 10,000 tons this year to meet the tin supply shortage of 20,000 in the world market by building a new tin processing plant worth US$2 million, Bisnis Indonesia reported Wednesday.

 

With the additional production, Timah’s output is expected to reach 55,000 tons this year, compared the previously targeted 45,000 tons per year due to the limited capacity of the existing plant. 

Timah’s commissioner R. Sukhyar said in Jakarta Tuesday that the additional output of 10,000 would not affect the tin price which currently exceeds US$12,000 per ton.

 

Under the company’s plan, the construction of the new tin processing plant with a capacity 5,000 tons will start this month or next month at the latest.

 

According to Sukhyar, it will take less than four months to construct the new plant and in August of this year, the new facility is expected to start operation.

 

He expressed the fear that the government’s move to extend more export licenses to tin mining companies in Bangka Belitung would lead the tin price in the world market to fall due to the oversupply of tin. (*)