Timah Shares Decline as Tin Plunges

JAKARTA: PT Timah Tbk (TINS) shares declined the most in nearly three weeks in Jakarta trading after tin futures fell in London, reducing the revenue outlook for Indonesia's largest producer of the commodity. Timah fell 2.6% to IDR2,825 rupiah as of 11:01 a.m. local time, set for the biggest drop since Dec. 16. Tin for three-month delivery dropped 2.1% to US$26,345 a metric ton in London yesterday. The company is also in talks with PT Bara Anugrah Sejahtera to acquire coal mining concession in Sumatra.In the presentation material submitted to Indonesia Stock Exchange (IDX) recently, Timah plans to buy coal mining concession with 36 million tons of deposit at US$72 million."Timah has completed feasibility study of business prospect. It is now conduction pre-due diligence," the presentation revealed.The coal concession has mineable reserve of 59 million tons on the area of 197 hectares with production capacity of 50,000 ton per month in 2010.Along with coal concession acquisition, Timah is now continuing to build the second phase of tin chemical facility.The company has completed the first phase facility with production capacity of 10,000 tons per year.Timah estimated tin chemical business will contribute Rp288 billion.The second phase, requires total investment of Rp250 billion, is expected to be accomplished in November 2011. (wiw)

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