PT Timah to diversify its business

PT Timah to diversify its business

JAKARTA (JP): The publicly-listed tin mining company PT
Tambang Timah announced yesterday that it has paid deposits of Rp
17.8 billion (US$7.6 million) to the Ministry of Mines and Energy
to start gold and diamond exploration in South Kalimantan.

"We expect to get the licenses for five blocks of exploration
areas totaling 1.8 million hectares in the province," Tambang
Timah's president Erry Riyana Hardjapamekas said after an annual
meeting of the company's shareholders.

He said that the deposit would be returned once the ministry
was satisfied with Timah's "seriousness" in carrying out the
proposed exploration.

Erry also explained that another state-owned mining company,
PT Aneka Tambang, has signed an agreement with Tambang Timah to
join the exploration.

"But we have yet to decide on the format of our cooperation
after the completion of the exploration," he said.

Yesterday's meeting, according to Erry, approved the
management's proposal to pay a dividend of Rp 65 per share. The
total payout will be Rp 33 billion.

Tambang Timah's net profits rose by 12 percent to Rp 134.5
billion last year, while its sales revenues increased by 15
percent to Rp 502 billion.

Erry said the volume of tin metal sold last year declined by 3
percent to 36,040 tons.

The company's financial performance, according to Erry, was
supported mainly by the combination of a sustained recovery in
tin prices and the company's improved efficiency.

Average realized tin prices were US$6,199 per ton in 1995 as
compared to $5,413 in 1994. (08)