Mandiri Sekuritas Timah: potentially benefited by lower Indonesia tin plate supply (TINS, Rp2,200, Neutral, TP: Rp2,800)

Ministry of Forestry is considering revoking location permit of Koba Tin, the second largest tin producer in Indonesia. Koba Tin is a subsidiary of Malaysia Smelting Corporation, the largest tin smelter in Malaysia, 3’rd largest in ASEAN. Koba Tin annually produces around 8k tons of tin, around 15% of Timah’s production. During the last several years, Koba Tin has been accused of various illegal mining activities, its mining permit will end in 2013. We view this will give positive impact to Timah as Indonesia tin supply could decline, therefore, support global tin price. Currently, we have Neutral recommendation on TINS which is trading at PER10-11F of 13.3- .8x.