Indonesiaâs biggest tin miner, PT Timah, says that it plans to begin the development of a smelter in Myanmar next year
Indonesia's biggest tin miner, PT Timah, says that it plans to begin the development of a smelter in Myanmar next year.
'We plan to construct a tin smelter in Myanmar next year. Our team aims to complete the feasibility study on the project by the end of this year,' Timah president director Sukrisno said as quoted by kontan.co.id on Friday.
He said the company had set aside around Rp 100 billion (US$8.28 million) for the tin smelter project.
The company previously established two joint ventures with local mining firms to help expand its business in the newly democratic country.
The joint ventures are PT Timah Myanmar Mining, the firm's arm to develop its mining sector in Myanmar, and PT Timah Myanmar, which will help it expand into the tin business there.
In addition, the company will focus on upgrading its existing equipment and expanding the shipyard, which is operated by its subsidiary PT Dok& Perkapalan Air Kantung, as part of its 2014 business plan. The company has allocated about Rp 1.4 trillion for capital expenditure.
The company has set a production target of 28,000 to 30,000 tons this year, around the same level that was reached the previous year. However, Timah is optimistic that it will book higher revenues, supported by an improving average selling price (ASP).
Following the implementation of a trade ministerial regulation, which stipulates that tin exports must go through the Indonesia Commodity and Derivatives Exchange (ICDX), Timah has seen its ASP climb to $23,000 per metric ton from the previous $19,000 per metric ton. (nfo)(+++)
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