Timah to buy six new vessels
Thursday, March 23 2017 - 02:37 AM WIB
Courtesy of Timah
IDX-listed tin giant PT Timah Tbk plans to acquire six new suction dredge vessels this year to support expansion of its offshore tin mining operation.
Timah Finance Director Emil Ermindra said on Wednesday that the additional vessels, worth about Rp 55 billion each, will expand the company?s fleet of suction dredge vessels to 26. ?We hope to realize this (vessel acquisition) this year,? he said.
He added that Timah is also planning to acquire new smelter that would process tin concentrates into tin bars.
Timah has allocated Rp 2.56 trillion for capital expenditure this year, of which Rp 2.3 trillion will be used for expansion of production capacity. The company is considering to issue bonds or seek bank loans to help finance the expenditure.
As per end of last year, Timah?s tin reserves stood at around 335,909 tons, of which about 79 percent is located offshore, and 21 percent onshore.
Last year, Timah?s tin output reached 24,121 tons, lower than 26,361tons in the previous year. The company plans to increase production this year to around 30,000 tons.
Editing by Reiner Simanjuntak