Timah quadruples 2004 profit on higher prices<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
State-owned PT Timah, the world's largest integrated tin miner,
\nmore than quadrupled its profit in 2004 on higher tin prices and
\na weaker rupiah against the dollar.<\/p>\n
Net income last year shot up to Rp 177.9 billion (US$18.92
\nmillion) from 2003's revised profit of Rp 36.5 billion, despite
\nlower production volumes and sales, the Bangka-based company
\nstated in a press release.<\/p>\n
Tin prices last year averaged $8,842 per ton, 76 percent
\nhigher than the average price of $4,817 a ton in 2003.<\/p>\n
Timah received Rp 2.8 trillion from the some 35,032 metric
\ntons of tin it sold in 2004, up from the Rp 1.95 trillion it
\nreceived from sales of 45,373 metric tons the previous year.<\/p>\n
Nearly all of its output was exported, with only 5 percent of
\nit being used for domestic consumption.<\/p>\n
The company also benefited from the weakening rupiah against
\ndollar -- the currency that it uses to conduct most transactions.
\nThe average dollar to rupiah exchange rate in 2004 stood at Rp
\n8,961 per dollar, slightly higher than the Rp 8,611 per dollar on
\naverage in 2003.<\/p>\n
In this year's financial report, Timah revised 2003's
\nperformance after making adjustments to comply with the
\naccounting standards required by the Labor Law (No. 13\/2003),
\nwhich regulates retirement and other post-work obligations.<\/p>\n
Net profit in 2003 was revised downward from Rp 76.4 billion
\nto Rp 36.5 billion.<\/p>\n
Timah President Director Thobrani Alwi was quoted by Detik.com
\nas saying that the company was targeting the production of 40,000
\ntons of tin this year.<\/p>\n
In its statement, the company said that analysts had forecast
\nthat the price of tin would stay at between $8,000 and $9,000 per
\nton on supply concerns as demand was increasing while no new
\nresources would come on stream in the near future.<\/p>\n
At its peak, tin was being traded at $10,100 a ton in 2004.<\/p>\n
The rise in tin prices has been triggered by the European
\nUnion (EU)'s decision to ban the use of lead for solders starting
\nin 2006 due to environmental concerns. The United States and
\nJapan were expected to follow suit.<\/p>\n
Solders are expected to account for about 60 percent of global
\ntin demand this year, with the remaining coming from food-can
\nmakers.<\/p>\n
Timah operates tin mines on several islands in the country,
\nincluding Bangka and Karimun, and in the coastal areas of
\nSumatra. Bangka has the world's largest tin deposits with some
\n420,000 tons of proven reserves, which it is estimated will last
\nfor the next 10 years.<\/p>\n
As part of its plan to diversify its businesses, the company
\nalso plans to boost the coal production of its subsidiary PT
\nTanjung Alam Jaya to one million tons this year from an estimated
\n400,000 tons last year.<\/p>\n
Timah is also considering acquiring asphalt producer PT Sarana
\nKarya in Buton island, located off the coast of Southeast
\nSulawesi.<\/p>",
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