Timah to proceed with Myanmar expansion plan

IDX-listed tin giant PT Timah Tbk seeks to realize its plan to boost investment in Myanmar this year after it was halted last year, The Jakarta Globe reported Monday.

Last year Timah said it planned to build a smelter in Myanmar to exploit potential tin reserves in that country. The Indonesian company reportedly owns a 10,000-hectare tin mining concession in Pubyien-Tamok, Tanihary, and it had concluded exploration in the concession area last June. However, the plan was canceled.

?Reserves at the location were not what we expected,? Timah Corporate Secretary Agung Nugroho said.

He said one option being studied is to acquire a smelter operator in Myanmar this year. The Southeast Asian country has emerged as the new frontier in the global tin industry with its abundant reserves, as Indonesia, the world?s biggest exporter, placed curbs on shipments, which has caused prices to rise.

Timah has set aside Rp 1.1 trillion ($87 million) for capital expenditure this year, compared with Rp 800 billion last year, as the company seeks to diversify its business.

Timah posted a 141 percent year-on-year increase in net income to Rp 341 billion in the first nine-month of 2014.

Revenue rose 21 percent to Rp 4.3 trillion, as its average selling price for tin climbed to $21,849 per metric ton from $21,318 per ton in the same period last year. (*)