Indonesia's PT Timah may not be able to produce 50,000 tonnes of tin this year as dry weather hampers operations, its president said on Thursday. The company reported record levels of tin-in-concentrate and refined tin of over 58,000 tonnes in 2007.
“We are worried that production may not reach 50,000 tonnes. The time we have to collect tin concentrate is shorter than in the first semester (first half of year) because of the weather problem and holidays,” President Director Wachid Usman said in an interview with Reuters.
The company is investing in the expansion of its offshore dredging capacity, but in the short-term this may be offset by falling onshore production. Usman said declining supply from its onshore mining areas was partly due to some small miners permitted to operate on its concessions illegally selling to third parties rather than Timah.
“We will reduce sales on the spot market if our production falls. The important thing is to meet the sales commitment to end-users,” he said, adding that the company already had a commitment to sell 42,000 tonnes of tin this year.
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