Indonesia’s state-controlled tin company PT Timah and the South Korean company H&H Global Resource Co Ltd have signed a memorandum of understanding to build a large tin chemicals plant on Bangka island, the Antara news agency reported. Timah has recently started up its first tin chemicals plant at Cilegon, Java and is investing further in in-house tin tetrachloride production to feed this operation.

"We are now waiting for the results of a feasibility study which is expected to be completed...

PT Timah has raised planned capital expenditure in 2011 to 1.4 trillion rupiah (US$163 million) from an initial plan of 1.2 trillion rupiah, as the company wants to expand its tin chemical plant and increase offshore tin mining, Bloomberg reported. Timah will finance 50% of the spending from bank loans.

In a separate report the Antara news agency said that a second phase of construction at Timah’s Cilegon tin chemicals factory in Java would be completed in 2012. The...