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espite looming production decline, PT Timah, the listed state-owned tin miner, is optimistic that it will be able to reach its revenue target of Rp 7 trillion (US$609 million) this year thanks to the increasing price of the commodity.

In contrast, coal miner PT Bukit Asam (PTBA) needs to boost production to gain more revenue as prices of the commodity declines due to slowing global economic growth.

Optimism on the part of PT Timah is apparently a result of the government'€™s policy, which requires tin to be traded at a local exchange before being exported, which consequently reduces the world supply and in turn boosts the prices.

'€œWe are unlikely to meet our target of 28,000 metric tons in sales volume this year. However, the target of revenue of Rp 7 trillion will likely be achieved as tin prices are increasing,'€ Timah president director Sukrisno said on Thursday.

Sukrisno is optimistic that the company will likely post a year-end sales volume of around 26,000 to 27,000 metric tons. However, Sukrisno said, the price of tin would likely touch $25,000 per ton by December.

Figures from Bloomberg citing the London Metal Exchange, which remains the tin market price setting benchmark, showed that tin rallied to $24,000 per metric ton on Oct. 4, the highest since March. It also showed that tin futures closed at $23,425 on Wednesday as stockpiles dropped to 12,835 tons, which was the lowest level since Jan. 16.

The Indonesian government recently introduced a new regulation requiring tin to be traded at a local exchange before exported. The move was aimed at making the country, whose tin exports account for 40 percent of total global exports, play a role in determining the price of commodity.

Not all tin producers in the country or buyers have become members of the exchange, making them unable to export or purchase the commodity.

Sukrisno said Indonesia'€™s tin exports would likely fall to 1,000 to 2,000 metric tons per month '€” from around 7,000 metric tons previously '€” following the regulation. '€œThis will make prices go above $25,000 per metric tons in 2014. Tin is a strategic commodity, it can'€™t be substituted by other products,'€ he said of the commodity that is widely used for packaging and smartphones.

As Timah has found hope from higher selling prices, PTBA is betting on increased sales to counter weakening coal prices due to slowing global economic growth.

PTBA reported 13.24 million tons in sales volume during the first nine months of the year, increasing by 17 percent compared to 11.36 million in the same period last year. PTBA president director Milawarma revealed that about 53 percent of the total sales volume, or 7.02 million tons, went overseas. The export volume during January to September experienced a 36 percent surge compared to the same period in 2012.

'€œWe are still trying to meet our target of selling 20 million tons by the end of the year. In 2014, we are expecting a 25 percent increase both in production and sales volume. We still don'€™t know about the finance as it depends on coal prices, which remain volatile,'€ Milawarma said on the sidelines of an extraordinary meeting of shareholders on Wednesday.

The company has not disclosed its average selling price during the first nine months of the year. Milawarma said he expected that PTBA coal prices would be above $60 per ton by the end of the year .

He added that more exports would benefit PTBA as the company would enjoy higher exchange rates from dollar earnings.

'€œIn terms of value, earnings in dollars roughly accounts for 60 percent [of total revenue]. Meanwhile, our spending in dollars is about 30 to 35 percent. However, prolonged weakening exchange rates will also effect PTBA as the company also imports the commodity,'€ Milawarma said.