Huge tin-processing facility breaks ground


Big player: Motorists using a bridge connecting Batam with surrounding islands. Indonesia was the second-largest producer of tin-mining products in 2022 and was estimated to be the third-largest in 2023. — AFP

JAKARTA: Indonesia has commenced the construction of tin-processing facilities in Batam, Riau Islands, that will cost 1.2 trillion rupiah (US$74mil) to build and startup.

A ribbon-cutting ceremony last Friday was led by Deputy Investment and Downstream Minister Todotua Pasaribu, who noted that Indonesia held the world’s second-largest tin reserves.

“Today we witness an important moment in the transformation of the national tin industry,” Todotua said in his speech, according to a statement released on the same day.

“Downstream development is key to ensuring Indonesia’s natural resources are used optimally, not just as raw commodities but as products with high value added,” he continued.

The project includes the construction of a tin chemical facility by PT Batam Timah Sinergi and tin solder facility by PT Tri Charislink Indoasia, both of which are subsidiaries of PT Cipta Persada Mulia.

The statement detailed that the investment and initial working capital for the project, expected to be the world’s largest tin-processing centre, totalled 1.2 trillion rupiah.

Cipta Persada Mulia’s activities range from the mining of tin ore to smelting and the production of tin ingots.

A VERY LOW BLOW

“The tin ingot is then further processed by (Batam Timah Sinergi) for the production of tin chemical and by (Tri Charislink Indoasia) to develop tin solder and tin heat stabiliser,” said Todotua.

The groundbreaking on Batam Timah Sinergi’s project marks the early stage of the construction, while Tri Charislink Indonesia’s marks the commissioning stage and full production, according to the statement.

“We are committed to supporting (the development) by expediting permits, monitoring investment realisation and developing local human capital.

“We are also pushing Batam Timah Sinergi and Tri Charislink Indoasia to attract more investors who will be the off-takers of their products,” said Todotua.

Large-scale tin processing in Batam also attracted investment from PT Solder Tin Andalan Indonesia in May last year.

The company is a subsidiary of Arsari Group, a mining conglomerate that counts Hashim Djojohadikusumo, brother of President Prabowo Subianto, as president commissioner.

The facility required 400 billion rupiah in investment, 100 billion rupiah of which went toward construction and the remainder for working capital.

The company produces tin-based solder wire and solder paste, which could be exported to Asia, Europe and the United States.

The raw material of tin is to come from Arsari Group’s mine on Bangka Island. Indonesia was the second-largest producer of tin-mining products in 2022 and was estimated to be the third-largest in 2023, according to data from the US Geological Survey.

More than 90% of the reserves are located in Bangka Belitung province, around 500km south of Batam.

The government had been mulling over plans to restrict shipments of tin ingots to attract investment for processing it onshore since 2022, which ultimately did not materialise.

The country has a similar policy for nickel ore. However, unlike nickel, Indonesia already exports high-purity refined tin, having banned exports of tin ore in late 2014.

It exports tin bars, solder bars and wires, Trade Ministry data showed. — The Jakarta Post/ANN

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