Indonesia seeking increase in tin export quota<\/p>\n
JAKARTA (JP): The state tin mining company PT Tambang Timah is
\nexpecting to double its net profit to over Rp 40 billion
\n(US$18.26 million) this year and is seeking an increase in the
\ncountry's annual tin export quota for 1996 to 35,000 tons.<\/p>\n
\"The jump in our after-tax profit this year is mainly due to
\nthe world's robust market and an improvement of our efficiency
\nfollowing the company's restructuring program, which began in
\n1989,\" the company's president, Erry Riana Hardjapamekas, told
\nreporters on Saturday.<\/p>\n
He said that the company's unaudited before-tax profit during
\nthe first 11 months of this year reached Rp 80 billion.<\/p>\n
\"We are optimistic that our net profit will be higher than the
\noriginally projected Rp 40 billion,\" he added.<\/p>\n
Erry said that tin prices on the world market, which reached
\n$5,900 per ton over the weekend, are estimated to average at
\n$5,500 this year, as compared to last year's $5,000 average.<\/p>\n
\"We expect tin prices to average at $5,600 per ton next year,\"
\nhe said.<\/p>\n
In the latter part of the 1980s, tin prices dropped from over
\n$12,000 per ton to $4,000 per tons, inflicting a deficit of Rp
\n25.61 billion at Tambang Timah in 1990.<\/p>\n
Erry said the current robust market, which is partly prompted
\nby a recovery in the economy of developed countries, is predicted
\nto continue until the end of this decade due to increasing
\ndemand.<\/p>\n
Demand for tin in Asia is likely to grow by eight percent
\nannually, as compared to an average growth of only two percent
\nthroughout the world, he said.<\/p>\n
Erry also said his company, which exports about 95 percent of
\nits output, plans to increase its sales on the domestic market to
\nsix percent.<\/p>\n
He said that under the restructuring program, the company has
\nreduced the number of employees to approximately 6,500 this year
\nfrom 23,000 in the 1980s.<\/p>\n
The program has helped increase the company's efficiency by 25
\npercent and the company can reduce its production costs from over
\n$6,500 per ton to less than $5,000, he said.<\/p>\n
Quota<\/p>\n
Erry said the company, which now produces four brands of tin
\ningots -- Banka low-lead tin, Banka tin, Mentok tin and Koba tin
\n-- plans to seek an increase in Indonesia's annual export quota
\nto around 35,000 tons per year, beginning in 1996, from the
\n30,500 tons at present.<\/p>\n
\"Indonesia is expected to submit a proposal to the Association
\nof Tin Producing Countries next year,\" he said.<\/p>\n
The association groups Australia, Bolivia, Indonesia,
\nMalaysia, Nigeria, Thailand and Zaire.<\/p>\n
The executive said that the company has expanded its tin
\nsmelting capacity to 45,000 tons per year, following the
\ninstallation of a new kiln, thereby making Indonesia the second
\nbiggest tin producer in the world after Brazil.<\/p>\n
Besides Tambang Timah, tin is also produced by private
\ncompanies in Indonesia.<\/p>\n
But in the case of low-lead tin, Indonesia, with an annual
\nproduction capacity of 900 tons, is the biggest in the world,
\nErry said.<\/p>\n
He said Tambang Timah sells 50 percent of its production to
\nAsian countries, 25 percent to Europe, 20 percent to North
\nAmerica and five percent on the domestic market.<\/p>\n
The company is now in a position to sell shares to the public
\nnext year. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-seeking-increase-in-tin-export-quota-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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