Production of tin-in-concentrate by Indonesia’s PT Timah fell by 42% year-on-year to 4,312 tonnes in the first quarter of 2013. While offshore production by the company’s dredges was relatively stable, declining by 15% to 3,681 tonnes, onshore production fell by almost 80% to only 631 tonnes.
The slump can be attributed to the re-organisation of operations necessitated by Indonesia’s new mining law, which took effect from 1 October 2012. Previously Timah relied heavily on purchases from small-scale miners working within its mining leases, but now has to be responsible for all mining itself. In addition it has taken over the processing of low-grade concentrate, partly in order to capture potentially important by-product values.
Refined tin production also declined, falling by 30% compared to the same period of 2012 to 4,774 tonnes. However refined tin sales were 5,820 tonnes, supported by a further draw down in stocks. The average selling price for tin in the quarter was US$23,910/t, 4% higher than Q1 2012, but the decline in volumes resulted in lower revenues and profits. Timah’s net profit declined by 51% year-on-year to Rp 102.8 billion rupiah (US$10.6 million).
