TINS to form joint ventures with Myanmar companies

IDX-listed tin mining company PT Timah (TINS) will team up with two Myanmar companies to jointly carry out the company?s tin mining and smelting operations in the country as required by the local government, Kontan reported on Friday.

Timah's president director Sukrisno said in Jakarta on Thursday that the tin mining company was still conducting a due diligence audit on two local companies which had been recommended by the Indonesian embassy to become its partners in Myanmar.

He said that the two Myanmar companies would hold between five and 10 percent stake in two joint ventures which would be established to carry out mining, and smelting operations, respectively.

PT Timah is one of several state owned companies which will expand their business in Myanmar. Timah has secured a permit to develop tin mines covering an area of about 10,000 hectares in Pubyin-Tamok, Myeik district, Tanithary State, Myanmar.

Timah has established two subsidiaries, PT Timah Myanmar Mining and PT Timah Myanmar, to carry out tin mining, and tin smelting operations, respectively. The two subsidiaries will then form joint venture with the two Myanmar companies in conducting their businesses as required.

Sukrisno hoped Timah would be able to pick up the local partners this month so that the company?s two joint ventures would be able to begin exploration activities this year. Timah will spend up to US$18 million in three years for exploration and production activities.

He hoped the company could begin tin production in Myanmar next year, with an annual production of about 10,000 tons. With the additional production in Myanmar, Timah will become the world?s largest tin producer. Last year, Timah produced 29,776 tons. (*)