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Jakarta (ANTARA News) - PT Timah Tbk projects its production this year to reach 50,000 tons rising a bit from last year`s recorded at 49,000 tons.

"Production will rise a bit compared to last year`s" its president director, Wachid Usman, said on the sidelines of a meeting with House Commission VII here on Wednesday.

Wachid said the production would be much influenced by the tin price in the international market.

He said the price of tin last year reached between US12,000 and US$13,000 per ton. "It is hoped this year it will reach above US$20,000 per ton or increase by around US$7,000 per ton," he said.

Based on that he said the company`s profit could be higher this year.

In 2009 the profit of the world`s second biggest tin producer was down compared to the previous year`s after the tin price slumped to US$13,000 per ton from US$18,000 before.

"This year it is hoped the market situation will be better and demand is increasing," he said.

To meet the production target the company would allocate Rp600 billion for capital expenditures including Rp450 billion to Rp500 billion for procurement of two new dredgers and five suction cutter dredges.

The rest totalling between Rp100 billion and Rp150 billion will be used to expand the tin chemical plant in Cilegon, Banten, which has started production in 2010 so that it could produce up to 10,000 tons a year in 2014 from currently 2,000 tons a year.

He said the company also plans to expand to a coal mining sector. He said it would acquire two medium-sized coal mining units in Kalimantan.(*)

Editor: Heru
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