Indonesia’s state-controlled tin company PT Timah reported a recovery in its production in the third quarter, but a dip in sales as new export regulations came into effect from 30 August. Despite having to declare force majeure on shipments and build stocks, Timah nevertheless still registered a small net profit in the quarter. It expects sales to grow through the fourth quarter and into next year as the new export system via the Indonesia Commodity and Derivatives Exchange (ICDX) is accepted by consumers. “Next year we expect Timah’s sales of refined tin will be more than 25,000-30,000 tonnes,” Timah CEO Sukrisno told Reuters, reiterating that the company targets to sell 24,500 tonnes of refined tin in 2013.
The company’s tin-in-concentrate production in Q3 was 7,078 tonnes, up by 20% on the previous quarter, while refined tin production increased by 34% from the previous quarter to 6,474 tonnes. Year-to-date production is still running around 30% below 2012 levels as a result of the re-organisation of operations in response to Indonesia’s new mining laws in the first half of the year. Year-to-date sales of refined tin are down by 41% on the corresponding period of last year, at 15,227 tonnes, so a real bounce will be needed in the remainder of the year to hit the 2013 target. However the recent pick-up in production, the availability of stocks (3,473 tonnes of refined metal at end-September) and the rapid growth in turnover on the ICDX in the last few weeks are all grounds for encouragement.
