Indonesia’s state-controlled tin company, PT Timah, has reported strong operational and financial results in Q3, aided by the rising tin price, although total production for the first 9 months of the year still lags behind 2015 levels.
Q3 mine production rose 9% year-on-year and by 20% relative to the previous quarter to 6,865 tonnes of tin-in-concentrate, primarily due to a doubling of production from onshore mining operations since Q2. Refined tin production fell 2% year-on-year to 6,475 tonnes, but was up 22% on the previous quarter. Despite a strong performance in Q3, mine production totalled 15,973 tonnes and refined tin production totalled 15,995 tonnes for the first 9 months of the year, with both totals representing a 23% reduction in output compared to the same period of 2015.
PT Timah reported a profit of Rp 50.64 billion (~US$3.8 million) for the quarter, despite an 9% reduction in revenues compared to the same period of last year. The cost of revenues also fell 12% year-on-year. Total tin inventory rose marginally relative to Q2 to 13,846t, with a 17% increase in ore stocks to 1,973t (Sn content) offsetting a 35% reduction in refined tin stocks to 3,790 tonnes, Tin inventory in slags remained broadly static at 8,083 tonnes.
The company press release outlined plans to modernise and modify mining techniques both onshore and offshore with the addition of new mining vessels and shelving of inefficient production facilities. An intensified exploration programme is also underway to address concerns about depleting reserves and resources. Also under consideration is the construction of a fuming plant at the company’s Muntok smelter, with the intention of increasing recoveries by reducing the quantity of tin discarded in slags.
