It is reported that Indonesia’s state controlled tin company PT Timah is planning to invest USD 50 million in the production of downstream products.

According to a report by the official Antara news agency, the feasibility study for such industries had already been conducted and a memorandum of understanding had already been signed with an un named Chinese partner.

The report did not specify which downstream products will be produced, but the most likely targets are solders and tin chemicals. The new business is expected to be in operation by the end of 2008.

Timah had previously announced that it is planning capital spending of IDR 1.3 trillion (USD 140 million) in 2008, which will be used both to expand its tin reserves and diversify into coal and other businesses.