Indonesia vows to increase tin production<\/p>\n
JAKARTA (JP): Indonesia will increase tin production from
\n28,353 tons last year to 34,000 tons this year, an executive
\nsays.<\/p>\n
Erry Riyana Hardjapamekas, president of PT Tambang Timah, the
\nstate-owned tin mining company, said in a hearing with Commission
\nVI of the House of Representatives (DPR) yesterday that the
\ncountry will continue increasing tin output to 35,000 tons in
\n1998.<\/p>\n
Indonesia produced only 25,794 tons of tin in 1992 and 22,163
\ntons in 1992.<\/p>\n
Erry did not specify the share of Tambang Timah in tin
\nproduction nor the shares of private sector companies.<\/p>\n
Tambang Timah usually shares about 80 percent of the country's
\ntotal tin production.<\/p>\n
Erry told the commission, which is in charge of mining, energy
\nand manufacturing, that the country's tin sales last year
\nincreased to 28,353 tons from 25,794 tons in 1992.<\/p>\n
He said that Tambang Timah, which was hard hit in the 1980s by
\nsharp declines in prices from over US$12,000 per ton to less than
\n$5,000 a ton, is now ready to compete on the world market because
\na drastic rationalization scheme has helped it reduce production
\ncosts from $7,445 a ton in 1989 to $2,997 at present.<\/p>\n
The rationalization scheme, which cost Tambang Timah Rp 113
\nbillion ($52.38 million), includes slashing the work force from
\nabout 24,000 people to 7,978 as of April, the sale of some of its
\nassets not directly related to production and the transfer of
\nsmall onshore mines to private sector firms. The number of the
\nemployees will be further reduced to 6,154.<\/p>\n
Profits<\/p>\n
Erry said the declines in production costs will help the
\ncompany gain more profits in the coming years.<\/p>\n
"Our after-tax profit, which declined from Rp 34.45 billion in
\n1992 to Rp 20.61 billion last year, is expected to increase to Rp
\n33 billion this year, to Rp 35 billion next year and to Rp 40
\nbillion in 1996," he said.<\/p>\n
Tambang Timah suffered a deficit of Rp 25.1 billion in 1990
\nand Rp 254.3 billion in 1991.<\/p>\n
Erry said profit gaining in the last two years will support
\nTambang Timah's plan to sell part of its shares to the public
\nthrough the Jakarta and Surabaya stock exchanges in November.<\/p>\n
"We expect to generate more than Rp 100 billion from the share
\nsales in November," he said.<\/p>\n
He explained that the company will use the funds to be
\ngenerated from the share offering to repay debts to banks and to
\nfinance the modernization of production facilities.<\/p>\n
The company has total debts of Rp 61 billion. (yns)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-vows-to-increase-tin-production-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }