Although its tin production picked up in the second quarter after the usual seasonally weak start to the year, profits reported by Indonesia’s state-controlled tin company PT Timah slumped, mainly due to lower tin prices.
Timah reported a net profit of Rp128 billion (US$13.6 million) in the second quarter, down 38% compared to the previous quarter and down 62% in comparison with the second quarter of last year. Profits in the first half of the year have been hit hard by lower tin prices, even though sales volumes have held up fairly well. Timah’s average realised tin price in the first half was US$22,565/tonne, 24% lower than in H1 2011. Sales volume was steady at 17,236 tonnes in the first half of this year versus 17,457 tonnes a year ago.
Production and financial data released on 30 July indicates that the company ran down tin metal stocks in H1 but accumulated concentrates and slag. Mine production of tin-in-concentrate in the period was 16,839 tonnes (down 5% year-on-year) while refined metal production dropped by 19% to 14,984 tonnes. In a change of reporting policy, no other operating data was released.
In a statement the company noted two important developments in its operations. The first deep water bucket wheel dredge is expected to be available in August this year, following the modification of one of its existing bucket ladder units. Secondly it is building up its ore dressing capacity in order to boost tin recoveries to 99.5% and also to capture larger volumes of by-product minerals such as monazite, zircon and ilmenite.
