Tin Production at TINS Shrinks, Hits Record Low in 2023

Recently, the Indonesian Attorney General's Office has been investigating an alleged tin trading corruption case within the Mining Business License (IUP) area of PT Timah Tbk (TINS).

As of April 3rd, 2024, the Attorney General's Office has not yet publicly disclosed details of the case. However, according to Bambang Hero Saharjo, a professor at the Faculty of Forestry, IPB University, the case has resulted in environmental damage losses estimated at Rp271 trillion.

PT Timah Tbk's production performance has been weakening over the past five years.

According to the company's official statement, in 2019 they produced 82,460 tons of tin ore and 76,839 metric tons of tin metal.

However, in subsequent years, their production volume decreased, reaching a new low in 2023.

Throughout 2023, they only produced 14,855 tons of tin ore and 15,340 metric tons of tin metal, about five times less than in 2019.

The company, with the stock code TINS, has not yet provided a detailed explanation of the factors contributing to the decline in production capacity.

However, they stated that TINS's performance decline in 2023 was also influenced by global conditions and illegal mining practices.

"The yet-to-improve global and domestic economic conditions, as well as weak global tin demand amid illegal mining activities, impacted the company's performance in 2023," said Fina Eliani, Finance and Risk Management Director of PT Timah Tbk, in a press release on Thursday, March 28, 2024.

She also stated that TINS will improve its production performance in 2024 through the addition of mining equipment, the opening of new locations, and a continuous efficiency program.

"Management is optimistic that the company's performance this year will be better in line with the target," said Fina.