Mining firms post strong profits

Mining firms post strong profits

The Jakarta Post, Jakarta

Publicly listed state mining firms PT Aneka Tambang (Antam)
and PT Timah announced on Friday that they recorded higher net
profits by more than two folds in the first nine months of this
year, due to higher prices of mining commodities.

In its press statement, Antam said net profit from January
until September rose by more than triple to Rp 520.7 billion
(US$57.8 million) from Rp 144.5 billion in the same period last
year.

Sales of its commodities -- nickel, gold and silver -- surged
to Rp 1.94 trillion from Rp 1.42 trillion, with operating profit
also rising to Rp 701.3 billion from Rp 287.4 billion.

During the first nine months of this year, Antam's average
price for nickel contained in ferronickel rose to $6.19 per
pound, as against $3.72 per pound in the same period last year.

The company's selling price for gold also rose by 15 percent
to $405.32 per troy ounce in average.

Meanwhile, the world's largest integrated tin producer PT
Timah announced its net profit surged to Rp 136.9 billion in the
first nine months ending September from Rp 58.7 billion in the
same period last year.

The company's sales increased to Rp 1.75 trillion from Rp 1.41
trillion.

"The high net profit was mainly attributable to higher selling
price, although production and sales volume was lower than the
same period last year," said PT Timah in a statement.

The average price of tin received by the company during the
third quarter of this year was $9,178 per ton, which was 93
percent higher than the same period last year, while the average
price during the first nine months of this year was $8,193 per
ton or 72 percent higher than in the same period last year.

Timah sales volume during January and September amounted to
22,643 metric tons of tin, or 34 percent lower than that of the
same period last year.

The company operates tin mines on several islands in the
country, including Bangka and Karimun, and in coastal areas of
Sumatra.

Timah has to lower its production output this year to about
40,000 tons from 45,906 tons last year, due to the lack of raw
material caused by the widespread of illegal tin mining in Bangka
island.

Prices of metals, such as nickel for stainless steel and tin
for electricity and automobile products, have soared since last
year, driven by the high demand of the commodities following a
rapid economic growth in China.

Antam shares ended unchanged at Rp 1,500 on the Jakarta Stock
Exchange on Friday, while Timah declined by Rp 25 to Rp 2,075.