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Timah set for pilot project for rare-earth factory
State-run tin producer PT Timah has started the construction of a processing plant for rare earth minerals in Bangka, and is expected to start commercial operations by the end of this year, pioneering the countryâs production of the minerals that are crucial for high-tech manufacturing
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tate-run tin producer PT Timah has started the construction of a processing plant for rare earth minerals in Bangka, and is expected to start commercial operations by the end of this year, pioneering the country's production of the minerals that are crucial for high-tech manufacturing.
Timah corporate secretary Agung Nugroho said on Thursday the firm had kicked off the construction of the plant in Tanjung Ular Mentok, Bangka Belitung, last month.
'We are finalizing administration procedures for the construction of the plant, and the winner of the plant's construction tender has been decided,' he said, declining to reveal details of the tender winner. 'As for the mineral processing and the procurement of necessary equipment, we will cooperate with BATAN [the National Nuclear Agency].'
The new plant, which is being constructed under the instructions of the State-Owned Enterprises Ministry, is established to process the company's waste reserves.
The total investment for the plant will be about Rp 20 billion (US$1.74 million), while the construction process will take around eight months. The plant will produce 50 kilograms of rare earth minerals per annum.
PT Timah currently has around 400 kilograms of reserves, resulting from years of operations, which according to Agung is enough to cover long-term operations of the plant. He said production from the plant would be exported, and the company had secured markets for the products.
He said the plant could be a stepping stone for the company to build a plant with a bigger capacity and investment. If the pilot plant proved to be successful, the area would be developed as an industrial estate for similar projects in the future, he said.
Separately, State-Owned Enterprises Minister Dahlan Iskan said the company would hold an official ground-breaking event for the plant, which he called a 'prototype plant', within weeks.
'At this time, rare earth minerals are only produced by China and western countries. Timah has the raw materials, which have only ended up being stockpiled,' he said.
For the pilot project, Dahlan said that Timah would start to produce Lantanum (La), Serium (Ce), Praseodinium (Pr) and Neodinium (Nd).
'This will be a historical moment for Indonesia to be recognized among the world's rare-earth producers,' he added.
Rare earths comprise 17 minerals used in the manufacture of hybrid cars, weapons, flat-screen TVs, mobile phones, mercury-vapor lights and camera lenses.
China has about a third of the world's rare-earth reserves but supplies about 90 percent of what is consumed. It has placed restrictions on exports, sparking concern among manufacturers from Japan to the US. With China's export restrictions, high-tech manufacturing countries have been looking for alternatives to reduce dependence on the East Asian country.
Timah's revenues went down by 20.5 percent year-on-year to Rp 5.85 trillion last year, following the implementation of a Trade Ministry regulation, which stipulates that tin exports must go through the Indonesia Commodity and Derivatives Exchange (ICDX).
