Timah Chemicals Plant Investment Behind Schedule

SHANGHAI, Sep. 25 -- PT Timah’s move to build up its downstream business in solders and tin chemicals is taking longer than expected, according to the Bisnis Indonesia newspaper. Construction of a new PVC stabilisers plant in Cilegon, Java is now a year behind the original schedule of a March 2010 completion.

Corporate Secretary Abrun Abubakar said that first-phase construction of the 10,000 tpy capacity factory was completed in August 2010, while the second-phase construction was targeted to be complete in the first quarter of 2011. The plant, which started construction in early 2009, was estimated to require an investment of Rp 250 billion (US$28 million). "This year, the capital expenditure on the plant in Cilegon will reach Rp 80 - 100 billion," said Abrun.

Total capital spending this year is planned at Rp 800 billion (US$ 88 million) with the construction and modification of offshore dredges high on the list of priorities. By the end of the year Timah hopes to have 15 of its own cutter suction dredges in operation, in addition to over 30 similar units operated by contractors. It has also begun work converting one of its 12 large old bucket ladder dredges into a bucket wheel unit able to mine in deeper water. If this is successful, Timah by 2015 will target to have five such converted dredges, each of which will cost around Rp 300 billion.