Timah continues to export tin to honor contracts

State tin mining company PT Timah Tbk still exports its tin in order to honor existing contracts with foreign buyers despite an agreement with other local tin producers to temporarily stop tin exports to prop up falling prices.

PT Timah?s president director Wachid Usman said in Jakarta last week that the company was still able to export its products to meet existing contracts despite the tin export moratorium agreement with other producers.

?As a state company, we should honor the contracts. That is why we are still allowed to export in order to honor contracts,? he added.

Timah estimates this year?s production will reach 40,000 tons and total sales to reach 35,000 tons. In the first semester, the sales totaled 15,253 tons, of which about 66 percent were sold under existing contracts, and the other 34 percent to the spot market.

Wachid said the company still needed to export another 8,000 tons in order to meet export commitment this year. A half of the total was shipped in November and the remaining 4,000 tons will be shipped in December. He said that Timah sold its tin at average price of US$23,000 per ton.

The average tin price in the third quarter was $27,754 per ton, with the highest price reaching $33,255 per ton and the lowest level at $19,100 per ton. At present, the tin price still fluctuates between $21,000 and $24,000 per ton. (giok)