Timah to construct upstream factories to expand business

Alfian ,  The Jakarta Post ,  Jakarta   |  Tue, 07/08/2008 10:20 AM  |  Business

State-owned PT Timah, the world's second largest tin producer, plans to build two downstream factories by the end of the year as part of an ambitious business expansion plan.

The tin solder factory in Kundur Island, Riau province, may start operating in October and will have an annual production capacity of 2,000 tons of solder wires, president director Wachid Usman said Monday.

He was speaking during a meeting with the House of Representatives' Commission VII overseeing mineral and energy affairs.

The second factory will produce chemical liquids to be used mostly in plastic industries. The plant is expected to begin operations before the end of the year, and will have a capacity of 10,000 tons per year.

Wachid said the downstream projects were part of the company's business expansion plans, as were plans to strengthen its coal mining business and to mine nickel.

It is planning to acquire several coal concessions in South Sumatra and in East and West Kalimantan, which have a combined 50 millions tons of coal reserves.

The company is also preparing to mine nickel ore in a 300-hectare area in Kabaena and Morowali Islands, in Southeast Sulawesi.

"We will continue seeking other opportunities to mine other metals," Wachid said.

Timah is also considering acquiring a number of tin mines in Darwin, Australia, each of which has 11,000 metric tons of tin primary stock, Wachid said.

Timah owns 521,066 hectares of mining concessions in Bangka Belitung and Riau provinces.

Timah booked a net profit of Rp 1.78 trillion last year, an 857 percent increase from Rp 208.1 billion in 2006.

Timah has mineable tin reserves amounting to 357,641 tons of tin-in-concentrate, which will last for about 6 years. Its sales volume in 2007 was 58,927 metric tons, up from 42,613 metric ton in 2006.

 

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