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Yunnan Tin to invest in Indonesian

By Wan Zhihong (China Daily)
Updated: 2007-05-30 08:57

Yunnan Tin Co Ltd, China's largest tin producer, said yesterday it will invest $9.69 million in tin smelting and mining joint ventures in Indonesia.

The company will invest $8.67 million in a $17 million tin smelting venture on Indonesia's Bangka island, in which it will hold 51 percent, the company said in a statement to theShenzhen Stock Exchangeyesterday.

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KJP Investments (S) Pte Ltd will hold a 48.41 percent stake, and PT Bangka Global Mandiri International will hold the remainder, the statement said.

Tin materials in Indonesia will support Yunnan's 20,000 ton per year tin refinery in Singapore, the statement said. The plant began operations last June.

Yunnan will also invest $1.02 million for 51 percent of a second $2 million joint venture, which will mine tin and other ores on Bangka.

In an attempt to expand mines and processing plants to meet growing demand, the company earlier sold 650 million yuan worth of convertible bonds. The funds will be used to develop two mines and three processing plants in Yunnan, and upgrade existing facilities.

Four Chinese smelting companies were on the list of the world's top 10 largest tin groups last year, with Yunnan Tin Co on top, followed by Yunnan Chengfeng, Liuzhou China Tin and Gejiu Zili.

Non-ferrous metal production in China is expected to grow 15 percent this year, boosted by mounting demand, according to industry insiders.

The combined production of 10 main metals, including aluminum, copper and lead, will reach 22 million tons in 2007, up from 19.17 million tons last year, according to the China Non-ferrous Metal Industry Association.

In 2006, China was the world's top non-ferrous metal manufacturer for a fifth consecutive year.

The Shanghai Nonferrous Metals Trade Association earlier issued its first daily price index for nonferrous metals to provide a reliable indicator to users and investors.

The Shanghai Nonferrous Metals Index is to be based on the spot prices of the six nonferrous metals - copper, aluminum, nickel, lead, zinc and tin - published on the Shanghai Nonferrous Metals website.