Bloomberg reported that PT Timah may produce less tin than forecast this year if prices stay low.

Mr Abrun Abubakar corporate secretary of PT Timah said that "We may produce within a range of 45,000 to 49,000 tonnes in 2009, reiterating an earlier forecast. Still, if prices remain low, we may cut production further."

PT Timah's refined output dropped to 49,000 tonnes in 2008 from 58,325 tonnes in 2007 because of low prices and as competition for ore supply intensified.

Mr Bambang Setiawan director general of minerals and coal at the Energy & Mineral Resources Ministry said that tin production in Indonesia may be less in 2009 than a planned output limit of 105,000 tons as low prices discourage companies from smelting the metal.

He added that "Our output this year won't reach 90,000 tonnes. Global demand is slowing, so automatically output levels at companies are adjusted."

(Sourced from www.bloomberg.net)