Timah to complete bucket wheel dredge project in 2012

State tin mining company PT Timah has allocated Rp 1.4 trillion (1US$ = Rp 8,600) in capital expenditure (capex) to finance business expansion this year, the company?s top executive said.

Timah's President Director Wachid Usman said in Jakarta on Thursday that about Rp 480 billion of the total capital expenditure would be used to finance the first stage of the company?s bucket wheel dredge (BWD) construction in Bangka and Belitung.

?The first stage of the BWD project is scheduled for completion this year,? he said.

A BWD for offshore tin mining is part of PT Timah?s long term plan to identify new dredging technologies for mining in greater than 50 meters water depths.

Speaking following the company?s annual shareholders meeting, Wachid said that as part of the BWD project, the company would also modify some of its dredgers in to BWD, which would cost the company about Rp 40 billion.

He said that Timah would also allocate Rp 180 billion to finance the second stage of its tin chemical plant project in Cilegon, Banten. The first stage of the project has been completed recently, enabling the company to produce about 6,000 tons of tin chemical a year.

Wachid said that the entire project was scheduled for completion in 2012 and would increase the production capacity to 10,000 tons.

During the meeting, shareholders approved the company?s plan to pay 50 percent of the 2010 net profit or Rp 473.9 billion as dividends (*)