In terms of demand, the reopening of China’s economy is expected to increase optimism for tin demand. However, global macroeconomic headwinds are likely to persist in 2023 and global recession risk will remain a threat to China’s demand recovery.
Even though global market conditions are still overshadowed by uncertainty, we remain optimistic in facing 2023 since tin is still considered an essential raw material for electronic products. We have also prepared a series of strategies for 2023, with a focus on improving the Company’s business fundamentals by optimizing production, carrying out thorough business efficiencies including the smelting process with TSL Ausmelt in operation, developing the business, and optimizing the performance of subsidiaries and talent development. To reduce costs, efficiency will be maximized in all business processes. This initiative is necessary to anticipate the downward trend of tin, thus allowing the Company to maintain its business continuity. This effort is under the direction of the Minister of SOE, who states that efficiency must be done to make the Company stronger and able to compete.
In 2023, we will emphasize on domestic demand for refined tin to support the Government’s commitment to strengthening the downstream national industry once the government regulation on quota restrictions of tin exports releases. To achieve the predetermined main corporate goals, we will generally carry out a main strategy that is aligned with the MIND ID strategy theme, including:
(i) aggressively increasing exploration and production growth;
(ii) increasing cost competitiveness through digitization;
(iii) building downstream assets on a global scale;
(iv) strategic alliances for new downstream business expansion; and
(v) capability development and portfolio optimization.