Timah to double 2017 capex

Courtesy of Timah

IDX-listed tin giant PT Timah Tbk will more than double its capital expenditure (capex) for this year to Rp 2.2 trillion-Rp 2.6 trillion, from Rp 1 trillion allocated for last year, Kontan reported on Wednesday.

The paper quoted Timah Corporate Secretary Sutrisno S. Tatetdagad as saying the higher capex is in line with the company?s plan to increase production this year by 20 percent to around 30,000 tons compared to the 25,000 tons estimated for last year.

He added that much of the capex, to be financed via internal and external funds, will be used to finance the capacity expansion of its mining equipment and processing facility.

Sutrisno also said that tin price is expected to be more stable this year amid lower production in Myanmar and solid global demand.

Tin price on the London Metal Exchange jumped by 45 percent in 2016. Analysts expect tin price to continue to rise this year. DBS Vickers Securities said in a recent note that global tin price is expected to remain in deficit in 2017 and 2018. (*)