Indonesian tin mining company PT Timah will set up two new subsidiaries to support its Myanmar operations. One of the subsidiaries will operate the company’s tin mine in Tanithary province and the other will market the locally-produced tin.
“We expect the two new business units, which will be fully owned by Timah, to begin operations in 2014, after we have started exploration in Myanmar in June this year,” PT Timah’s president commissioner Insmerda Lebang says. “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.”
The country’s Energy Ministry approved the company’s purchase of the Tanithary concession in November last year. The company has allocated US$18 million to develop the 10,000-hectare site over a three-year period. PT Timah expects to produce 10,000 tonnes of tin per year from the mine, which would make it the largest tin producer in the world.
The company has recently become focused on Myanmar in a bid to increase its diminishing tin reserves at Bangka Belitung Island, while considering building a smelter in the country as well.
PT Timah is one of several Indonesian state-owned corporations such as cement producer PT Semen Gresik, telecommunications company PT Telkom Indonesia and oil and gas firm PT Pertamina hoping to expand their business into neighbouring South East Asian countries.