JAKARTA (Scrap Monster): Indonesian Tin major PT Timah has announced that it has decided to withdraw from plans to build new tin smelter in Myanmar. The company stated that security reasons and failure to find an ideal location for the plant prompted it to back out from the project.

 

Earlier, the company had plans to build 12,000 tpy tin smelter in Myanmar. It had obtained exploration concession on 10,000 hectares land in Tanihary. The exploration programmes had begun in June this year and the company was hoping to start construction of the smelter in early-2015.

 

However, the company predicted 15% jump in net income in 2015, mainly on account of higher sales and strong recovery in Tin prices. The company also expects the savings to be benefitted by proposed cut in dividend payment to the government from existing 55% to as low as 30%. This is on the basis of government plans to reduce the dividends of state companies as announced recently by the Indonesian Finance Minister Bambang Brodjonegoro.

 

According to PT Timah President Director Sukrisno, the company expects to post net income of US$44 million in 2014. Further, he stated that tin sales this year is estimated around 26,000 tonnes. The sales are expected to jump higher by 15% in 2015. The exports during next year weer predicted to range between 60,000 tonnes and 70,000 tonnes.