Indonesian miner plans 2 local units

Publicly listed Indonesian tin mining company PT Timah says it will establish two subsidiaries to support its operations in Myanmar.
 
PT Timah president director Sukrisno said one subsidiary would operate the firm's tin mine in Tanithary province in Myanmar and the other would market its tin produced in Myanmar.

"We expect the two new business units, which will be fully owned by Timah, to begin operations in 2014," Sukrisno said in Jakarta.

Timah, according to Sukrisno, expected to start exploration in Myanmar in June. The firm is currently processing needed permits.

"There are several steps before we can really start exploring reserves there. Right now, the focus is to obtain all necessary permits from the local government in accordance with their mining procedures," he said.

In November, Timah secured a concession in Pubyien-Tamok in Myeik, Tanithary, from Myanmar's energy ministry.

The company has allocated US$18 million (Bt540 million) to develop the 10,000-hectare site over a three-year period, expecting to produce 10,000 tonnes of tin per year from the mine, which would make the firm the largest tin producer in the world.

The cost of the firm's expansion plans into Myanmar would be sourced internally, Sukrisno said.

He added that Timah might receive offers of financial assistance from other institutions if it could collect dependable data on the concession's tin reserves.

Timah's plans in Myanmar were part of efforts to increase the firm's tin reserves, as its reserves from concessions in Bangka and Belitung islands have started to lessen significantly.

The firm would also consider building a smelter in Myanmar, Sukrisno said.

Timah will operate its concession in Myanmar mine under a production sharing contract. The company has envisioned reaping 80 per cent of the production with the remainder going to the Myanmar government. The firm is currently still waiting for the local government's response to its proposal.

source: The Nation
http://www.nationmultimedia.com/aec/Indonesian-miner-plans-2-local-units-30199408.html