PT Timah Tbk (IDX: TINS) plans to build two smelters with an investment of around US$100 million - Photo: The Company.

JAKARTA (TheInsiderStories)

JAKARTA (TheInsiderStories) – Indonesian miner, PT Timah Tbk (IDX: TINS) plans to build two smelters with total investment around US$100million, said the official today (08/27). First smelter has been build since 2018 is Ausmelt with an investment of $80 million and is expected to be operate in 2021.

“Our alluvial reserves are running low so we have to go into the deep mine so we need Ausmelt smelter,” Timah’ Finance Director Emil Ermindra told reporters today (08/27) without give any clarification on the second smelter plan.

The company will meet the investment to build this smelter from bank loans and bond issuance. In July 2019, the company issued bonds worth of Rp1.3 trillion ($91.5 million). In addition, the company is also exploring refinancing cooperation with the Finnish credit agency, Finnvera. The company hopes to produce 45,000 MT tins from the smelter, he adds.

The company also plans to build a smelter in Nigeria as part of the company’ expansion and secure new tin ore reserves. In 2017 the company has said to invest billions of US dollars in the Nigerian minerals and mining sector.

Ermindra revealed, his party has established cooperation with partners in Nigeria, exploring the potential of tin and exploring the area that will be used as a smelter. The tin ore company has signed a Joint Venture Agreement (JV) with Topwide Ventures Limited to explore and manage the exploration, mining, processing and refining, transportation, sales and marketing of tin and mineral derivatives that exist in the African Continent.

“The smelter in Nigeria will have a capacity of around 5,000 Mt with an investment of around $20 million,” he said.

Beside, other state-owned mining company, PT Bukit Asam Tbk (IDX: PTBA) plans to build two steam power plants joined with China Huadian Hongkong Co. Ltd. The first project is the South Sumatra Mine Mouth 8 Steam Power Plant in Muara Enim. The construction has started since 2018 and is expected to operate commercially in 2021.

“This project requires an investment of around $1.68 billion and will be funded by Exim Bank of China,” he said.

The miner also synergize with PT Aneka Tambang Tbk (IDX: ANTM) to build the Feni Steam Power Plant, East Halmahera. This project has a capacity of 3×60 megawats (MW) for steam power plants and 3×17 MW for diesel power plants. The project is expected to provide electricity supply for Antam’ ferronickel plant in East Halmahera, North Maluku.

Written by Staff Editor, Email: theinsiderstories@gmail.com