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tate-run tin producer PT Timah will not increase its output next year in a bid to boost prices while diversified miner PT Aneka Tambang (Antam) will continue to rely on gold to offset its declining business in the nickel sector.

Timah president director Sukrisno said on Wednesday that the company would maintain a tin production level of between 25,000 and 30,000 tons next year, similar to its production level this year.

'€œFor sales, we will have to see the situation, particularly with the upcoming implementation of a government policy starting on Nov. 1. We can sell less than 30,000 metric tons if the price still low. However, if the price is higher, we can release our stockpile,'€ Sukrisno said.

The policy in question is a regulation on tin trade that stipulates that tin can be exported if producers have carried out their obligations to the state, particularly royalty payments, presentation of documents on working plans and budgets as well as fulfillment of a clean and clear status.

The clean and clear status also requires miners to protect the environment and ensure that their mining areas are not overlapping each others.

Under the new regulation, the government will also allow the export of only three types of tin, namely refined tin ingots, tin solders and other types of tin products. The refined tin ingots have to be traded on the local futures exchange before being sold in either the international or domestic market.

The regulations aim to eliminate illegal tin mining and trade in the country.

Timah has been suffering from a low tin selling price on the back of slowing demand, while stockpiles continue to rise, partly due to illegal mining activities.

Sukrisno said that current global stocks stood at around 4,600 metric tons, far lower than the 14,000 to 15,000 metric ton high levels of the past years. Despite the declining stock, he added, the price remained floating at US$16,000 per ton.

'€œGiven the low stock level, the price should have been rising. However, there is no change, meaning that the black market is still there,'€ Sukrisno said.

He added that his company currently has around 6,000 metric tons in its inventory and would release between 1,000 and 2,000 metric tons if the price increased.

Meanwhile, Antam is setting its ferronickel sales target at 20,000 tons next year, slightly higher compared to the 19,600 tons estimated for this year, president director Tedy Badrujaman said.

Gold sales are projected to at 10,053 kilograms next year, lower than the estimated 16,313 kilograms this year. While sales are significantly lower, the company'€™s gold production target is set at 2,450 kg next year, higher than the 2,347 kilograms this year.

Apart from gold production from its Pongkor and Cibaliung mines, Antam also refines bullion from other parties, which make its sales volume far higher than its production volume.

Bauxite production is also estimated to increase as the company needs the commodity to feed its chemical grade alumina (CGA) smelter in Tayan, West Kalimantan.

Bauxite production is targeted to reach 300,000 wet metric tons (wmt) next year, up from 200 wmt this year. Following the government'€™s policy of banning the export of raw materials, Antam no longer exports nickel ore and bauxite, but still produces the commodities for its own smelters. Sales of nickel ore and bauxite used to be a major contributor to the firm'€™s revenue.

'€œFor now, gold is the largest contributor to the company'€™s revenue and we are expecting a similar trend next year,'€ Antam finance director Dimas Wikan Pramudhito said.