Tambang Timah to focus on gold exploration, Erry says<\/p>\n
JAKARTA (JP): Publicly listed tin mining firm PT Tambang Timah
\nis to refocus its priorities to gold exploration to boost its
\nperformance, a company executive said here on Tuesday.<\/p>\n
Company president Erry Riyana Hardjapamekas said that the
\ncompany, which for years has relied on tin mining, should seek
\nother mining opportunities to improve its finances.<\/p>\n
\"We have to focus more on gold exploration as there are no
\nmajor developments in the tin mining business,\" he said, adding
\nthat the business expansion priority at present was to boost
\nexploration in its existing gold mining concessions in Aceh and
\nTapanuli, both in northern Sumatra, and in West and East
\nKalimantan and East Java.<\/p>\n
Erry said that the company held a total of 11 mining blocks
\ncovering 3,144,705.53 hectares.<\/p>\n
The company's corporate secretary, Prasetyo, said that the
\ncompany would allocate about Rp 60 billion (US$8.1 million) for
\ngold mining explorations in 1999, a sharp increase on the Rp 16
\nbillion budget for this year.<\/p>\n
\"Since we are going to focus on gold mining exploration, we
\nwill have to allocate a significant budget for next year,\" he
\nsaid.<\/p>\n
He said that Tambang Timah had received a contract of work
\n(COW) from the government to explore for gold and other
\nassociated minerals in Aceh for 30 years.<\/p>\n
He said the company had set up a joint venture firm, PT
\nKutaraja Tembaga Raya, in cooperation with Phelps Dodge
\nAustralasia Inc. of the United States.<\/p>\n
He said Tambang Timah controlled a 25 percent stake in
\nKutaraja with Phelps Dodge Australasia holding the remaining
\nstock.<\/p>\n
Tambang Timah, which is listed on the London Stock Exchange,
\nis one of the most efficient tin mining firms in the world.<\/p>\n
It produced 42,620 metric tons of tin last year and 40,337
\ntons in 1996.<\/p>\n
Erry said that Tambang Timah, which recorded a total net
\nprofit of Rp 305.7 billion in the first six months of this year,
\nexpected to a record net profit this year.<\/p>\n
\"We expect to more than double our net profit this year
\ncompared to last year,\" he said.<\/p>\n
He did not mention any projected figure.<\/p>\n
Tambang Timah recorded a total net profit of Rp 177.81 billion
\nin 1997.<\/p>\n
Erry said the significant increase in net profit was mainly
\ncaused by the rupiah's sharp depreciation against the American
\ndollar.<\/p>\n
\"About 75 percent of our net profit is likely to be because of
\nthe rupiah's depreciation,\" he said.<\/p>\n
The rupiah has strengthened to between Rp 7,500 and Rp 8,000
\nin the last few weeks on renewed confidence in the Indonesian
\neconomy.<\/p>\n
The rupiah plunged to a low of Rp 17,000 to the dollar in
\nearly January from its pre-crisis level of 2,500 in August 1997.<\/p>\n
Erry said the company had benefited significantly from the
\nrupiah's sharp depreciation because the company generated most of
\nits revenue in U.S.dollars.<\/p>\n
\"The rupiah's depreciation has meant a windfall profit for
\nus,\" he said.<\/p>\n
Tambang Timah, controlled by the government, is one of the 12
\nstate companies set to be partially privatized this fiscal year.
\nThe government expects to raise US$1.5 billion in fresh funds
\nfrom the privatization of the companies. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tambang-timah-to-focus-on-gold-exploration-erry-says-1447893297",
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