Indonesia's Timah sees 2010 tin output at 40,000 T after rains

Indonesia's state-owned PT Timah , the world's largest integrated tin miner, said on Wednesday it saw production in 2010 at 40,000 tonnes or lower due to heavy rains hampering mining, down from an earlier forecast of 45-50,000 tonnes. 

"Because of bad weather, with rain for almost the whole year, probably our output this year will only be 40,000 tonnes, or it could be less than 40,000. There is declining 

production from offshore and onshore mines due to rains," said spokesman Abrun Abubakar. 

The lower output forecast could exacerbate worries about declining supplies from Indonesia, which propelled benchmark tin on the London Metal Exchange (LME) to a record high of $27,500 a tonne in November. 

The La Nina weather anomaly is expected to prolong the rainy season in Indonesia for months, worsening a trend of falling tin supply. Analysts had expected Indonesia's refined tin output to fall nearly 6 percent this year because of the extended rains.Source: Reuters