PT Tambang Timah to go public this year: Minister
JAKARTA (JP): The state-owned tin mining company PT Tambang Timah plans to offer shares to the public through the capital market in November.
Minister of Mines and Energy I.B. Sudjana said on Saturday, "The company, which received an unqualified opinion for its financial report of 1993, is now finalizing preparations to meet the administrative requirements for going public."
The minister was speaking to reporters after naming Erry Riana Hardjapamekas, a former finance director of Tambang Timah, as its new president.
Erry replaced Kuntoro Mangkusubroto, who is now director general of mines.
The company has successfully restructured its industrial activities over the last three years, including the concentration of mining in the most prospective areas and reduction of the number of its employees, he said.
The company plans list its shares on the Jakarta Stock Exchange.
Erry told The Jakarta Post that Tambang Timah will likely sell new shares that will account for around 20 percent of its enlarged number of shares to raise Rp 100 billion (US$46.55 million).
He said the company expects to assign a public accountant and auditor this month to support its plan to sell shares, and will appoint its underwriters next month.
"Six companies have shown interest to underwrite Tambang Timah's share issuance," he said.
The six firms include Niaga Securities and Indovest Securities.
Tambang Timah, which has cut the number of its employees from 24,000 to only around 8,000, holds total assets worth US$179 million. Its annual sales reach about $150 million per year.
Erry said the funds to be generated from the share sales will be used for the procurement of new production equipment, tin cargo ships and dredging vessels.
Profits
Erry said the after-tax profit of Tambang Timah, which exports most of its products, declined to Rp 20 billion last year from Rp 34 billion in 1992 due to falls in tin prices on the world market.
Profit is expected to increase back to Rp 25 billion this year, he said.
Kuntoro said 50 percent of the company's exports are destined to East Asian countries, 20 percent to North America and 25 percent to West Europe. The remaining five percent is sold domestically.
"Our exports reached 30,000 tons worth Rp 300 billion last year," he said.
The company produces four brands of tin ingots, including Banka Low-lead Tin, Banka Tin, Mentok Tin and Koba Tin.
Kuntoro said tin prices are now hovering at around $5,000 per ton, while Tambang Timah's production cost is estimated at $4,000 per ton.
Besides installing Erry, Sudjana also swore in Maryat Nirwandi finance director, Patia Pandjaitan as director of technical affairs, Muljadi Nitiwisastro as production director and Muhamad Husni as director for general affairs of Tambang Timah.
Haposan Silalahi was appointed as chief commissioner of Tambang Timah to replace State Minister of Administrative Reform T.B. Silalahi, who is a former secretary-general of the Ministry of Mines and Energy, and B.L. Noormandiri as commissioner of the company, while Ridwan Machmud, Hamonangan Hutabarat and Dibyo Koentjoro were reappointed as its commissioners.
Silalahi also installed Adjat Sudradjat as chief commissioner and R.A. Sunarti, Soelendro Atmosoetjipto, Djoko Darmono and Gunawan Suratno as commissioners of PT Aneka Tambang, the state- owned general mining company.(fhp)