Indonesian smelters halt tin ingot exports -assoc

Smelters in Indonesia's main tin producing region of Bangka island have halted all tin ingot exports and will meet this evening to decide the length of the ban, an industry group said on Monday.

Smelter owners on Bangka island are due to meet from 1300 GMT to discuss the export ban, the Indonesian Tin Industry Association, told Reuters.

"Smelter owners had agreed to stop all tin ingot exports," said Murod. "(It) started two days ago -- owners are not doing shipping until unspecified time limit."

He added that the meeting had been arranged with the Bangka governor Eko Maulana Ali, and that smelter owners could re-start if prices returned to between $22,000-$24,000 a
tonne range.

Tin, mainly used in solders for electronics, struck a record high above $33,000 in April but like other base metals has slumped in recent sessions, as fears of a global recession fueled another round of selling in base metals.

At 0741 GMT, benchmark tin on the London Metal Exchange fell more than 8 percent to a low at $18,401 a tonne on fears over economic uncertainties.


On Friday, Murod said tin exports from Southeast Asia's largest economy, could fall by more than half to 40,000 tonnes per year, if benchmark tin prices held at current levels or below.
"The market is in deficit despite price action, and this would help shore up the market," said Robin Bhar, an analyst at Credit Agricole in London. "It wasn't that long ago we were trading $28,000-$29,000... this news will help to stabilise.

"It is not going to take it all the way back up to $29,000 but effectively, it puts a floor under the price," he added. "This sort of news, if it is confirmed and followed through ... this will have a major impact on the market."

Indonesia, the world's top refined tin exporter, expects to produce 90,000 tonnes of refined tin this year, up from 78,965 tonnes in 2010, on expectations of improved weather conditions.

Trade ministry data showed that Indonesia's tin exports from January until August this year were 67,989.84 tonnes.

Bangka island, off Sumatra's east coast, is the world's largest tin-producing area. Indonesia supplies about 30 percent of the world's tin consumption.

A crackdown on illegal mining, tighter export regulations, declining onshore reserves and rain that had hindered production in Indonesia helped drive the tin rally earlier this year.
Small smelters on Bangka island depend on traditional miners for between 70 and 80 percent of their ore supply.

The Indonesian ministry for coal and mining, energy did not respond to telephone calls or text messages on Monday. Source: Reuters

Indonesia tin exports may fall 50 pct on price drop-assoc

Tin shipments from the world's top tin exporter Indonesia may fall by over 50 percent to 40,000 tonnes per year, if benchmark prices for the metal remain at current levels or below, an industry association said on Friday.

"My forecast, if prices remain at current level or lower, then annual exports will fall ... with volume at 40,000 tonnes per year," Johan Murod, general secretary at the Indonesian Tin Industry Association, told Reuters.

Tin , mainly used in solders for electronics, struck a record high above $33,000 in April but like other base metals, has slumped to its lowest level in more than one year amid a bleak outlook for the global economy. Source: Reuters

Sarana, Tower Bersama lead race for Indosat telecom towers-sources

Indonesian telecom tower firms Sarana Menara Nusantara Tbk PT and Tower Bersama Infrastructure Tbk PT are leading the race to buy about 4,000 towers worth about $500 million from Indosat Tbk PT , three sources said on Monday. 

Indosat, the nation's No.2 mobile phone provider, launched an initial sale of 4,000 towers in June and has drawn interest from several local firms. 

"The company is now in talks and negotiating with Tower Bersama and Sarana and expects the deal to be completed by the end of the year or January 2012," said a source with direct knowledge of deal. 

The company may sell less than the initial plan of 4,000 towers due to a valuation issue but will still draw about $500 million, the source added. 

Solusi Tunas Pratama, a potential bidder who plans to raise up to 380 billion rupiah ($43 million) in an initial public offering in October, dropped out the plan, two sources said.

All sources declined to be identified due to the sensitivity of the issue. 

Australia's ANZ , Bank of Tokyo-Mitsubishi UFJ , Credit Agricole CIB and United Overseas Bank have agreed to support Bersama on an exclusive basis, sources told Thomson Reuters' Basis Point in July. 

Meanwhile, banks including DBS , ING Bank , OCBC Bank , Standard Chartered Bank and Sumitomo Mitsui Banking Corp are likely to support the financing of an acquisition by Profesional Telekomunikasi Indonesia (Protelindo), controlled by Sarana, sources said. 

The sale could be the first auction of around 10,000 towers sources told Reuters last year that Indosat was considering selling. 

Indosat, controlled by Qatar Telecom , declined to comment. Tower Bersama and Sarana are also declined to comment. Source: Reuters