PT Tambang Timah posts Rp 170b net profit in 1997
JAKARTA (JP): Publicly listed tin mining company PT Tambang Timah's net profit rose 10 percent to Rp 170 billion (US$18 million) last year, company president Erry R. Hardjapamekas said yesterday.
"The company's balance sheet has already been audited, but we have yet to release the details," Erry said on the sidelines of a ceremony in which the company received an International Standard Organization (ISO) 14001 certification.
Timah recorded a 16.4 percent increase to Rp 156.6 billion in its 1996 net profit from Rp 134.5 billion in 1995.
Erry said last year's profit increase was the result of a company efficiency program and the rupiah's sharp depreciation against the U.S. dollar, rather than an increase in export volume or price rises.
This year, Timah expects to considerably increase its profit if the rupiah continues its depreciation, said Erry.
He did not give any projection figures.
Erry said that as part of its efficiency program, Timah would reduce the amount of imported components for its production facilities by either producing the components in-house or by purchasing locally made components.
He said Timah planned to increase tin output to 46,000 tons this year from 45,000 tons last year.
Timah, listed on the Jakarta and London stock exchanges, mines 20 percent of the world's tin, of which 96 percent is exported to Asia, the United States and Europe.
The company claims to be the world's largest and most efficient tin miner and producer.
Timah has mines on the islands of Bangka, Belitung, Karimun and Kundur near southern Sumatra.
According to Erry, tin prices have decreased to $5,200 per ton on the international market this month, compared to $6,400 per ton in the same month last year, due to an oversupply.
But Erry was optimistic the price would climb throughout the first half of the year.
ISO
Timah was awarded yesterday the ISO 14001 certification for its environmental management system at its Mentok-Bangka production facilities by Britain's Aspects Certification Services in cooperation with PT Biosfer Nusantara Lestari.
Erry received the certificate from Aspect director Barry FP Little in a ceremony which was presided over by Minister of Mines and Energy I.B. Sudjana and attended by mining company executives.
The certification was awarded only to Timah's purification and smelting facilities.
Timah is preparing all of its other units, including its exploration and exploitation units, for ISO 14001 certification in the future.
Little said Timah was the world's first tin mining company and the first Asian mining company to receive the ISO 14001.
He said the certification would provide Timah with more access to markets abroad.
Sudjana said that by accepting the certification, Timah showed its commitment in addressing local and global environmental preservation concerns.
"PT Tambang Timah's proactive measures to preserve the environment should be imitated by other mining companies, by all companies in the mining and energy sector," Sudjana said. (jsk)