Beng Kuang introduces dredge equipment for offshore tin mining
Beng Kuang Marine Limited has designed and developed specialised dredging equipment for offshore tin mining activities.
Installed on barges, the specialised dredging equipment has been tested for operational efficiency in various offshore tin mining sites in Indonesia with the following highlights:
- Deep-water extraction of up to 60 metres;
- Capable of drilling and extraction of 8-10 holes daily;
- Extraction rate of 100 kg to 150 kg per hole.
Tin’s high conductivity, low melting point, high specific gravity, low toxicity, and relative abundance makes it an essential component of modern electronics.
In the early 2000s, electronics manufacturers and suppliers transitioned away from leaded to lead-free solders, with higher tin concentrations. As lead-free solders came to dominate the market, the demand for tin production surged.
At 80,000 tons annually, Indonesia is the second largest tin producer in the world, just barely behind China’s 85,000 tons. Tin mined in Indonesia and throughout the world is predominantly used in solders, both for electronics as well as for plumbing and other structural solders.
Since 2020, the price of tin has been on a strong uptrend, due to severe supply tightness resulting from COVID-19 lockdowns, especially in Malaysia and Indonesia, major tin producers accounting for a combined 30% of global refined tin production in 2020, Fitch notes, that has yet to match up with demand despite easing slowly.
Fitch expects tin demand to continue outstripping supply, pushing the market into deficit by 2026.
With its specialised dredging equipment, Beng Kuang Group aims to develop new value propositions for offshore tin mining activities and create new revenue streams.