Local govt pledges to help ailing Timah

Moch. N. Kurniawan The Jakarta Post Jakarta

The Bangka Belitung provincial administration has promised to ban the export of tin concentrate in the future to curb illegal mining activities on the islands and prevent state-owned tin mining firm PT Timah from collapsing, a senior official said on Tuesday.

Bangka Belitung provincial administration secretary Robuan Zaenuddin said the local government had made the decision in a recent meeting with Timah and another major tin mining company in the area, PT Kobatin.

He said the province could not yet ban tin concentrate exports due to the Ministry of Industry and Trade decree No. 146/1999, which permits concentrate exports.

"But our effort is now becoming more positive. We have received support from the central government, which has agreed to revoke the ministerial decree," he told the Jakarta Post.

Once the government revokes the decree, Robuan said, the local authorities will ban tin concentrate exports and allow only tin metal exports from the islands.

Through the ruling, the local government expects to bring an end to the activities of illegal miners on the islands, who only produce concentrates.

"The ruling will help Timah and Kobatin because they are the only operators producing tin metal," he said.

When asked for comment, Timah spokesman Prasetyo B Saksono said Timah welcomed the move, as it would ease difficulties for the company.

Timah has blamed illegal miners for causing a drop in the world tin price and fall in its revenue.

Its profits fell 92 percent to Rp 25 billion (US$2.4 million) in the first nine months of 2001, down from Rp 296 billion in the same period last year.

Timah has suspended some of its production units and planned to cut 3,750 jobs due to the loss of income.

State Minister for State Enterprises Laksamana Sukardi earlier said he was considering merging Timah with state-owned gold and nickel company PT Aneka Tambang in an effort to save Timah.

Aneka Tambang objected to the plan, saying the merger would only impose financial burdens on their operations.