Jan 20, 2015

Indonesian tin mining firm to restart Myanmar expansion

Indonesian state-controlled tin miner Timah seeks to realise its plan to boost investment in Myanmar this year after it was halted last year, reports the Jakarta Globe on January 19.

According to the newspaper, Timah corporate secretary Mr Agung Nugroho told Investor Daily newspaper recently that last year Timah planned to build a smelter in Myanmar to exploit potential tin reserves in the country.

Indonesia’s biggest tin miner reportedly owns a 10,000-hectare tin mining concession in Bokpyin township, Tanintharyi Region in Myanmar, and it concluded exploration in the concession area last June.

However, the plan was cancelled.

“Reserves at the location were not what we expected,” Mr Agung said.

He said one option being studied is to acquire a smelter operator in Myanmar this year. Myanmar has emerged as the new frontier in the global tin industry with its abundant reserves, as Indonesia, the world’s biggest exporter, placed curbs on shipments, which has caused prices to rise.

Timah has set aside Rp 1.1 trillion [US$87 million or K87 billion] for capital expenditure this year, compared with Rp 800 billion last year, as the company seeks to diversify its business.

The tin miner also plans to enter the property sector, with the establishment of a subsidiary this year, according to Mr Agung.

Timah posted a 141 percent year-on-year increase in net income to Rp 341 billion in the first nine-months of 2014.

Revenue rose 21 percent to Rp 4.3 trillion, as its average selling price for tin climbed to $21,849 per metric ton from $21,318 per ton in the same period last year.

Source: Mizzima