Indonesian smelters delay re-starts
Release date: 09 Jan 2009
itri.co.uk
Low prices and bad monsoon weather are delaying the re-start of operations at most independent smelters on Indonesia’s tin islands. Most of the major operations were shut down in October and exports by companies other than the large integrated producers, PT Timah and PT Koba Tin, have been minimal since then.
"We have not started operation yet," Ismiyardi, commissioner of PT Bangka-Belitung Timah Sejahtera, a consortium of 9 private smelters, told Reuters on Friday. "We are still cautious because tin prices are still fluctuating and it will affect our production cost." The wet season crippled operations because miners could not collect ore, squeezing raw material supplies, he said, adding that the consortium planned to produce 2,700 tonnes of refined tin when it resumed operations by the end of January.
The monsoon has also affected the major producers. Heavy rains had flooded two of the three gravel pump mines operated by the firm, Koba Tin's spokesman Darmansyah told Reuters. "River levels increased because of heavy rains and flooded the mines," Darmansyah said, adding that the company sourced tin ores from other mining areas and planned to export 700 tonnes of refined tin in January. Koba plans to mine 9,000 tonnes of tin-in-concentrate this year. |
