In recent days PT Timah executives have given further details of the Indonesian state-controlled tin company’s capital expenditure plans for 2008.
Total capex next year is expected to rise to Rp.800 billion (US$86 million), from Rp.300 billion in 2007. Around Rp 400 billion is to be spent on the acquisition of six new tin dredges, while Rp.200 billion is allocated to the construction of two solder plans on Bangka and Kundur islands and a tin chemicals operation on Bangka. All the downstream tin units are expected to start production in 2009. The other main investment next year is the construction of an asphalt plant at a cost of Rp.150 billion.
Timah is also looking at acquiring a coal mine in Kalimantan or Sumatra as part of its diversification strategy and to boost its current small coal reserves.
