State-controlled Indonesian tin producer PT Timah said it will order two new generation dredges worth around US$100 million this year, the Antara news agency reported. The two bucket wheel dredges are due to be operational in 2014 said Wachid Usman, Timah’s President Director, adding to another dredge of the same type which is planned to be in operation in 2013. Timah is gradually upgrading its dredge fleet, replacing its old bucket ladder dredges by either the new deep water vessels or smaller lower cost cutter suction ones. It a recent presentation the company said that its offshore tin mining leases contained resources of an estimated 649,402 tonnes of tin, of which 217,549 tonnes was classified as proven and probable reserves. Timah’s offshore operations produced 20,444 tonnes of tin-in-concentrate in 2010, although production in 2011 is expected to have declined.
The company’s corporate secretary Abrun Abubakar said Timah has set capital expenditure at Rp2 trillion (US$222 million) this year to finance the purchases of the dredges. Abrun said part of the capital spending will also be used for its Mentok tin smelter on Bangka island.
