PT Tambang Timah to go public this year: Minister

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)