Indonesia views Tanzania as one of its priority partners. In January 2020, publicly listed company specializing in tin mining business, PT Timah Tbk, said it was ready to support the Tanzanian State Mining Corporation (Stamico) in the exploration of 15 mining perimeters.
This action was nothing more than a follow-up action to the agreements concluded between the two countries in 2019. Four bilateral agreements have been signed between the two countries, including a potential Indonesian investment of US$83 million in Tanzania.
The agreements include a due diligence plan, an assessment of the potential collaboration, the preparation of a feasibility study and the preparation of a joint venture. Aside from the tin exploration, other potential exploration potentially offered to Stamico includes nickel, gold and rare earth minerals.
Timah is also looking to expand its business in other African countries: Rwanda, Congo and Nigeria, where the exploration phase is intensively underway. The company’s ex-director Riza Pahlevi Tabrani said he was approached by several foreign investors from other African countries, and neighboring countries such as Laos and Vietnam.
Timah is currently finalizing its design of a new factory in the west of Bangka in Bangka Belitung Islands. The construction of this 100-hectare factory was expected to begin in late 2020 to produce monazite, known as rare earth metal, necessary for the development of electronic products. The company has not been able to disclose the investment value of the plant but openly stated its needs for potential strategic partners. Currently, Timah’s President Director Achmad Ardianto explained that Timah was still exploring and validating its reserves of rare earth metals in the area.
Timah is an Indonesian public company and one of the world’s largest producers of tin, with more than 44,500 tonnes mined in 2018. It has been listed on the Indonesian Stock Exchange (IDX) and the London Stock Exchange since 1995.
Update: The COVID-19 pandemic destabilized the tin’s price, hence the company has reduced its production by 20%-30% of the monthly target. In March 2022, the price of tin has more than doubled over the past 12 months and is also the highest in 10 years period. The export market accounts for 95% of the company’s total sales, destined as materials for the giants of electronic industries in Asia, in which demands are increasing lately. As for mineral exploration, its expansion in Africa will continue as planned.
