Timah Shares Surge on Indonesia's Tin-Export Controls (Correct) By Claire Leow (Corrects to say highest since 1999 in second paragraph.) Jan. 24 (Bloomberg) -- Shares of PT Timah, the world's second-largest tin miner in 2005, surged after the government moved to curb illegal exports, potentially raising costs at rival producers. The stock gained 950 rupiah, or 17 percent, to 6,700 rupiah on the Jakarta Stock Exchange, its highest close since June 22, 1999. Almost 42 million shares were traded, compared with the six-month daily average of 6.4 million. Indonesia, the world's second-biggest tin producer, on Jan. 22 ordered miners to register within one month for the right to export the metal to try and clamp down on the use of illegally extracted tin ore. The move has boosted tin futures in London to their highest since at least 1989. ``Securing new mining licenses will take time,'' said PT Mandiri Sekuritas mining analyst Ahmad Solihin. ``The new decree will require illegal smelters to pay royalties and taxes, effectively raising their production costs. Therefore the smelters might no longer be able to outbid Timah.'' Only companies with mining licenses and who have paid royalties can export refined tin with a minimum purity of 99.85 percent, Diah Maulida, director general of foreign trade at the Ministry of Trade, said yesterday by phone. Timah would also benefit from higher tin prices, said Solihin, who has a 12-month target on the stock of 7,650 rupiah. Tin, used in electronics soldering, has risen 67 percent in the past year as Indonesia has cracked down. Metal for delivery in three months gained $150, or 1.2 percent, to $12,300 a ton on the London Metal Exchange today, the highest since at least 1989. Timah has forecast output of 45,000 tons of tin this year. Indonesia produces about 70,000 tons a year, Solihin said. To contact the reporter on this story: Claire Leow in Jakarta at [EMAIL PROTECTED] Last Updated: January 24, 2007 04:43 EST
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