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.